(Answered) Based on the article what is the key concern of the rba

Management Studies

Based on the article what is the key concern of the RBA which may result in it decreasing interest rates? Use the AD/AS framework to describe the situation.

What are the factors that determine whether such a policy will be successful?

Starting from long-run equilibrium, use the basic (static) aggregate demand and aggregate supply diagram to show what happens in both the short run and the long run when there is a crash in property market (property prices fall by a large amount). Explain your diagram.

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