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Employ the aggregate demand and supply model for the Australian economy, to analyse the consequences for real GDP and the general price level of the following scenarios. Confine your analysis to the short-run. In your response clearly state your assumptions and illustrate your answers with diagrams.
(a) the price of iron ore, a major export product, increases substantially,
(b) a favourable set of weather conditions leads to a substantial rise in Australian agricultural output,
(c) the government spends significant money in developing a broadband internet network across the country,
(d) the price of oil, a product Australia primarily imports, fall substantially.
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