Explain the initial impact of this government spending on household expenditure and investment, including how this will ultimately affect inflation and unemployment in NZ. -

Economics

12 May 2022 Pius

Explain the initial impact of this government spending on household expenditure and investment, including how this will ultimately affect inflation and unemployment in NZ.

Monetary Policy and Exchange Rates

Part A Question:

Using the AS/AD model, explain the effect of the increase in interest rates on aggregate demand, aggregate supply, price levels and economic growth.

Explain the initial impact of this government spending on household expenditure and investment, including how this will ultimately affect inflation and unemployment in NZ.