Assume that Malaysia is currently operating at natural level of output. However, due to the Covid-19 pandemic, the consumption has decreased by 21% and total investment has decreased by 70% as compared to year 2019. The effects of the event are greater than the people anticipation. Based on the statement above, explain the effects stated above on price level, output and unemployment in short run and long run in Malaysia by using appropriate diagrams.
Assume that Malaysia is currently operating at natural level of output. However, due to the Covid-19 pandemic, the consumption has decreased by 21% and total investment has decreased by 70% as compared to year 2019. The effects of the event are greater than the people anticipation. Based on the statement above, explain the effects stated above on price level, output and unemployment in short run and long run in Malaysia by using appropriate diagrams.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter8: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 4WNG
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Assume that Malaysia is currently operating at natural level of output. However, due to the Covid-19 pandemic, the consumption has decreased by 21% and total investment has decreased by 70% as compared to year 2019. The effects of the event are greater than the people anticipation.
Based on the statement above, explain the effects stated above on price level, output and
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