while the budget factored in a decline in Australia'sterms of trade,the fall in global commodity prices over recent months has been larger that anticicipated.

while the budget factored in a decline in Australia’sterms of trade,the fall in global commodity prices over recent months has been larger that anticicipated.

a)Discuss

the reasons for the main movement in Australia’s terms of trade over the last decade.

b)what vould be the likely impact of a decline in terms of trade on the australian economy?Analyse the impact on the macroeconomic variables in australia making use of the mundell-fleming model,assisted by diagrams.

c)discuss the implications for monetary and fiscal policy of the decline in the terms of trade.make use of diagrams in your answer
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