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a. The Coyidlg pandemic has signigantzl}.r eifect the economy around the world and the suitable policyr to be implemented is EKPESiDaIY scal policy. Suppose the
a. The Coyidlg pandemic has signigantzl}.r eifect the economy around the world and the suitable policyr to be implemented is EKPESiDaIY scal policy. Suppose the government is focusing more on tax component instead of the other components. Explain in details how tax can impact both aggregate demand and aggregate supply in this situation. Give an example of each. [15 marks) If actual employment is lesser than full employment= what scal policy actions could eliminate the gap? Is there any possible new.r problem will occur with the policy taken by the government to eliminate the gap? Illustrate and explain what adjustments, if any, take place? (15 marks)
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