Question: 4. Use the aggregate demand-aggregate supply analysis to discuss the effects of the following on output and the average price level. Illustrate the results in

4. Use the aggregate demand-aggregate supply analysis to discuss the effects of the following on output and the average price level. Illustrate the results in a well labelled diagrammes. a) A reduction in the rate of income taxation. b) A decrease in government spending. c) An open market purchase of government securities by the Bank of Zambia. d) For some reason, a wave of optimism suddenly overtakes the economy. e) Zambian farms are infested with army worms. 4. Use the aggregate demand-aggregate supply analysis to discuss the effects of the following on output and the average price level. Illustrate the results in a well labelled diagrammes. a) A reduction in the rate of income taxation. b) A decrease in government spending. c) An open market purchase of government securities by the Bank of Zambia. d) For some reason, a wave of optimism suddenly overtakes the economy. e) Zambian farms are infested with army worms

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