How such a shock may affect the Australian economy, economics homework help

4 Some economists hold the views that Australia is heading to a recession (for such a view, read here http://www.abc.net.au/news/2016-07-29/australia-he…

One such scenario may come from a crash in the Australian housing market. Keeping in mind of the Aggregate Demand and Supply (AD-AS) framework, elaborate how such a shock may affect the Australian economy. Also, discuss what policy instruments the government have in response, and how they work in practice?

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