In: Economics
After the pandemic effects of economic measures taken in
Turkey's economy likely to create the framework for the IS-LM model
to discuss monetary policy.
Discuss the possible negative shock situation due to the pandemic
over the AD-AS curve.
After the pandemic effects of economic measures taken in
Turkey’s economy likely to create the Framework for the IS and LM
model to discuss monetary policy it means that after the pandemic
the situation of investment and savings is affected negatively
means people are not prefer to invest more in the economy or there
is a reduction in the investment project but in comparison to this
people prefer the liquid money to hold so that they can handle the
situation easily in the difficult situation the productivity and
the job security is totally on a down track after the
pandemic.
The possible negative shock situation due to the pandemic on the
economy is likely that the condition of aggregate demand will
reduces and the condition of aggregate supply also reduces means
there is no such possible condition of aggregate demand in the
economy and in comparison to this the aggregate supply is also not
at all applicable. Aggregate supply is on downward movement because
there is no possibility of productivity because there is no
investment and in the absence of supply consumers are not demanding
more goods as there is a very short flow of money supply in the
economy.