Explain what will happen next and suggest a monetary and/ora fiscal policy to adjust out put and analyse the effect of this policy on the price level and employment
Part 1 (30%) Consider an economy where the level of production (Y) is not at the natural level (Yn), that is, an economy in which Y≠Yn.Using the AS/AD model, explain what will happen next and suggest a monetary and/ora fiscal policy to adjust out put and analyse the effect of this policy on the price […]