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Question (10 marks) Using appropriate diagrams, explain the likely impact of drought on macroeconomic equilibrium in...

Question (10 marks)
Using appropriate diagrams, explain the likely impact of drought on macroeconomic
equilibrium in Australia. Use evidence drawn from media reports to illustrate you answer. How
might government policy response to the drought modify the macroeconomic impact of the
drought?

Approx 2,000 words.

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