You are a reputed Business Economist working for a reputed organisation. You are required to analyse the following aspects and submit your report:
1) Do you think that the government expenditure and tax cuts will be sufficient to help revive the tourism sector and aviation in the process? With many people working from home and with international borders remaining closed, stress levels are on the rise for many who are unable to travel. Given the current circumstance of border restrictions in the country, do you believe that domestic tourism will pick up? How does it affect the macro economy in terms of Aggregate Demand (AD) and Aggregate Supply (AS)? Explain your views clearly with appropriate diagrams to support your answer.
2) The Reserve Bank of Australia (RBA) is keen on reducing the unemployment to 4.5%; RBA would also like to see an increase in inflation to 2-3% from the current 1.1% How do you suggest we could revive the macro economy given the repercussion from border restrictions and lockdowns in every state? Use recent data to support your answer; your data cannot be over 5 years old.
3) Do you think that a further A$1.9 billion investment in vaccine rollout would help save the tourism sector? If states impose tough entry laws, how do you suggest that domestic tourism could revive given that they are also hotspots for tourism industry? Further, what are your views on keeping borders closed – is it boon or a bane to the tourism and aviation industry in Australia given that tourism constitutes a good part of injection into the circular flow? Use any recent data to support your answer. Your data cannot be over 5 years old.