Use the AE model to explain and show the impact of an autonomous fall in the value of goods exported to China by Australia. (You can assume the fall is constant across all levels of real GDP). Be sure to discuss in detail, the process by which this fall is transmitted through the economy.
Use the AE model to explain and show the impact of an autonomous fall in the value of goods exported to China by Australia. (You can assume the fall is constant across all levels of real
Now after this fall in exports is worked through, explain and show the impact of an autonomous fall (of lesser magnitude than for exports) in the value of goods imported by Australia from China. (You can assume, as before, that the size of the fall is constant across all levels of real GDP). Again, be sure to discuss in detail, the process by which this fall is transmitted through the economy.
The change in the export and import would affect the net export of country, so the aggregate demand in the economy. The change in aggregate demand will affect the output and employment in the economy.
The fall in the export to the china would cause the fall in the aggregate demand in the economy. The aggregate expenditure in the economy decline.
It will would cause the fall in the real GDP and unemployment will rise. The fall in the export causes the fall in the net exports.
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