Question 1: To support people through the economic shock caused by the COVID-19 Pandemic, the Australian Government published some special benefits for those unemployed. How do you think these actions might mitigate the costs of unemployment?
Question 2: An economy is described by the following equations:
C = 1300 + 0.75(Y - T) IP = 500
G = 1200
X = 110
M = 10
T = 1500
Y* = 12000
You are required to:
1. Find a numerical equation linking planned aggregate expenditure to output.
2. Find exogenous expenditure and induced expenditure in this economy.
Question 3: Define the relationship between an interest rate and people's saving rate. Will the decreased saving in Australian households become a big problem for the economy?
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