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(b) When does a continuous optimism towards future production and income by investors and consumers become self-fulfilli
Posted: Thu May 05, 2022 6:41 am
by answerhappygod
- B When Does A Continuous Optimism Towards Future Production And Income By Investors And Consumers Become Self Fulfilli 1 (89.88 KiB) Viewed 17 times
(b) When does a continuous optimism towards future production and income by investors and consumers become self-fulfilling and lead to a prolonged high economic growth? Explain using the AD-AS model introduced in this course. Please answer within 200 words with appropriate diagrams. (4 marks) (c) From 2021, disruption in supply chain and increasing oil price have brought about high inflation and slower recovery of GDP growth rate from the pandemic for many economies. The recent war in Ukraine and sanctions against Russia is likely to prolong this problem and worsen the situation. Using the AD-AS model you have learned in this course, explain the situation. Also, discuss what kinds of government macroeconomic policy are appropriate to improve the situation, or if there is a dilemma. Please answer within 300 words with appropriate diagrams. (7 marks)