Please answer all questions in Macroeconomics below,
and answer them in detail and precisely.
Question 5 (Word limit 500 words)
The world economy, in the last few months, has started
to slow down due to many factors, such as trade wars, uncertainty
over Brexit, and general slowdown in other economic activity.
Assuming an economy starts initially at the full
employment equilibrium, discuss (with the aid of aggregate output
market and money market diagrams) the short run effect of a
decrease...