1. Business
  2. Economics
  3. the august unemployment figures for australia were surprisingly better than...

Question: the august unemployment figures for australia were surprisingly better than...

Question details

the August unemployment figures for Australia were surprisingly better than predicted (did not continue to increase) given the collapse that occurred in the economy due to COVID closures.

(a) Use the static AD-AS model to explain the short run impact of the COVID closures on the economy and discuss the implications this has for unemployment. 

b) Comment on the limitations of the static AD-AS model in analysing the situation under COVID. 

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution