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(a)Briefly discuss how the Government of Malaysia can use expansionary fiscal policy to increase Aggregate Demand (AD) when the country faces recession.(4 marks) (b)Suppose the

(a)Briefly discuss how the Government of Malaysia can use expansionary fiscal policy to increase Aggregate Demand (AD) when the country faces recession.(4 marks)

(b)Suppose the government spends RM10 billion on infrastructure projects during a recession.

(i)Explain briefly the initial effect of the above government spending on the Aggregate demand.(2 marks)

(ii)If the multiplier is 5, explain how the multiplier effect will affect the Aggregate demand in the country.(2 marks)

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