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Assume that Australia’s macroeconomic equilibrium is initially at full employment. Asia experiences a slower economic growth.  As...

Assume that Australia’s macroeconomic equilibrium is initially at full employment. Asia experiences a slower economic growth.  As a result, their demand for Australian coals and iron ore decrease.  Using the AD-AS model, explain carefully the immediate and long-term effects of this event towards the Australian economy.  Drawby hand the appropriate Aggregate Demand-Aggregate Supply diagram to support your explanation.                                                                                                                    

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