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Acartel is often an unstable relationship as individual members both seek andseize the opportunity to cheat on the agreement and improve their own positionat the expense of others. Assume that the OPEC oil cartel becomes subject tothis tension or conflict such that the cartel gives way to a more competitiveoil market resulting in a dramatic decrease in the world oil price.

As aresult Australia experiences a significant decline in the rate of inflation

Using the aggregate demand - aggregatesupply framework, consider the likely response of the Australian economy interms of the rate of inflation, the level of real GDP and the unemployment ratein both the short run and the long run.

Your answer should be in two partsconsidering first, the outcomes without the lower inflation rate causing achange in potential output and then secondly, allowing for such a change inpotential output.

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关键词：relationship unemployment significant Experiences Considering individual agreement conflict decrease members

写得真好                                                                        
                                       
                                                     
                                                     
                                             
                                                                 
                                                                                 

用中文更好。