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a) The COVID-ISl pandemic had caused business taxes and wage rates to decline in Thailand. Assume that any change in Aggregate Demand (AD) is greater

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a) The COVID-IS"l pandemic had caused business taxes and wage rates to decline in Thailand. Assume that any change in Aggregate Demand (AD) is greater than any change in Short-run Aggregate Supply (SRAS). Use the AD-AS framework to explain the changes in the price level and Real GDP for Thailand in the short run and long run. (15 marks) b) Is there is a difference between a change in the interest rate that is brought about by a change in the price level and a change in the interest rate that is brought about by a change in some factor other than the price level? Explain your answer. Diagrams are required. (10 marks)

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