Question

In: Economics

After the pandemic effects of economic measures taken in Turkey's economy likely to create the framework...

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.

Solutions

Expert Solution

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.


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