Problem
Combination Policy
(a) Graph an AD/AS model with sticky wages and show graphically and explain with words how the Australian government with the help of the Reserve Bank could increase government spending while keeping the economy at full employment without causing changes in the price level.
(b) If they pursue this policy, what happens to the amount of investment in the economy?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.