Assume that Malaysia is facing a recessionary gap, and at the same time, the value of its
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Question:
Assume that Malaysia is facing a recessionary gap, and at the same time, the value of its currency drops. During this period, the Prime Minister announces in the federal budget that the personal income tax rate is to be increased to avoid the federal budget deficit from worsening.
Explain with the AD_AS GRAPH.
Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
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