1. The aggregate supply curve shifts to the right because a ineptitude in takes leads to a decrease in come up of turnout which consequently increases the total supply as firms ar able to produce in a larger quantity rod since they are able to allocate more currency for the production of goods and services. This brings to the fall in customary scathe train as the grade of the persistent rise in general price level slows down and eases inflationary pressures accordingly. The interest rate detain low as the rate of inflation is low. 2. The diminution in inflationary foreknowations would be a major constituent in the decline of wages growth because the income earners or wage earners would not demand for higher(prenominal) wages as they expect the rate of inflation would be lower in the time to come so they can still afford their living expenses without demanding for higher wages. 3. The boilersuit competitiveness of Australia would drop if the decline in the paroch ial heavens was greater than that of the earthly concern sector because clandestine sector is affected by self-interest, orphic initiative and breadstuff motive thus private sector would introduce a greater alteration and volume of products in order to reap consumers to purchase their products.
The profit motive acts as a coercive incentive for private sector to undertake research and suppuration as fountainhead as innovation to increase efficiency in production. The humankind of private sector would be a threat to the public sector because consumers will direct their expenditure to the goods and servi ces provided by the private sector for the f! act that private sector provides cleanse prime(a) of goods and services. Therefore, the public sector would have to repair the quality of goods and services in order to remain in the market. Hence, a greater decline in the private sector... If you deficiency to exit a full essay, order it on our website:
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