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Due to COVID-19 situations the oil prices fall in international market. Let's assume that output starts at its natural level. a. What happens to the

Due to COVID-19 situations the oil prices fall in international market. Let's assume that output starts at its natural level.

a.What happens to the Pakistan's economy (output and price) in the short run? Explain your answer using AS-AD graphs. (2.5 Marks, Maximum )

b.What happens to Pakistan's economy (output and price) in the long run? Explain your answers using graphs. (2.5 Marks, Maximum )

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