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Consider the following data for Indonesia: 2008 2009 Real GDP growth (%] 6 5.6 Consumer prices [% change] 6.0 5.0 Lending interest rate (avg; %)
Consider the following data for Indonesia: 2008 2009 Real GDP growth (%] 6 5.6 Consumer prices [% change] 6.0 5.0 Lending interest rate (avg; %) 13.6 13.9 I mun Whimu) m g . ,3 W .4.- ..\" " ' 'v ' .3\" .m A mm .m* A' m ' m m gunmawwugmumu Summ- Note: Use the AD-AS 3 curve model to model the economy and its changes for part (a) & (b) 2010 4.3 3.8 13.2 a. Model the impact of the appreciation of the rupiah on the Indonesian economy over the period in the chart, assuming that the economy was at ll potential in May 2009. b. Subsequently, the Indonesian Central Bank responds to this trend by carrying out an expansionary monetary policy. Model this. You don't have to bring the economy to equilibrium
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