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EIA1009 1. (a) Andaikan model Keynesian dengan harga fleksibel and upah wang fleksibel. Gunakan gambarajah IS-LM dan AD-AS untuk menerangkan kesan ke atas output, harga,

EIA1009 1. (a) Andaikan model Keynesian dengan harga fleksibel and upah wang fleksibel. Gunakan gambarajah IS-LM dan AD-AS untuk menerangkan kesan ke atas output, harga, kadar faedah, upah benar dan gunatenaga diberi penurunan perbelanjaan kerajaan. Consider the Keynesian model with a flexible price level and flexible money wage. Using the IS-LM and AD-AS diagram, explain the effects on output, price, interest rate, real wages, and employment, given a decrease in government spending. (10 markah/marks) (b) Bagaimanakah keanjalan permintaan wang terhadap kadar bunga mempengaruhi keberkesanan dasar kewangan? How does interest elasticity of money demand influence the effectiveness of monetary policy? (15 markah/marks)

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