Question: please help. Question 5120 marks: a) b) d) Explain what happen to the Aggregate demand (AD) curve of a country when there is a sudden

please help.

please help. Question 5120 marks: a) b) d) Explain what happen to

Question 5120 marks: a) b) d) Explain what happen to the Aggregate demand (AD) curve of a country when there is a sudden stock market crash. (4 marks) Explain what happen to the long-run Aggregate supply (LRAS) curve of a country when the government relaxes its immigration law to attract highly skilled overseas talents. (4 marks) Suppose Country A is suffering from recession. The policy makers could increase the government spending to raise the output to end the recession. But such a policy could also cause a negative side eifect on AD and therefore reduces the policy eemiveness. Explain. (4 marks) Except raising government spending, adjusting interest rate might be an alternative. Recommend such an alternative policy to the government that is also suitable for the current situation of Country A. Illustrate one method that the government can use to change the interest rate, and to explain the way to which it helps to end the recession. (8 marks)

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