This economics assignment analyzes the Reserve Bank of Australia's (RBA) decision to reduce the cash rate, exploring its potential downside risks such as lower returns on government bonds and deteriorating international trade, particularly the trade conflict between China and the USA. The report examines recent GDP growth, highlighting positive contributions from the goods and services sector and the impact of foreign debt, while also noting challenges in the manufacturing and construction sectors. Furthermore, the assignment discusses the federal government's Newstart payment and its implications for aggregate expenditure, employment, and the overall economy, including the use of expansionary fiscal policy and its effects on the aggregate expenditure curve and equilibrium outcomes. The report uses data from the Australian National Accounts and relevant figures to support its analysis, providing a comprehensive overview of the economic situation.
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
