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(ii) Explain the effects of an increase in aggregate demand on the price level, multiplier and GDP in the immediate short run, short run and

(ii) Explain the effects of an increase in aggregate demand on the price level, multiplier and GDP in the immediate short run, short run and long run.

(6 marks)

(b) Discuss the pros and cons of currency speculation. (8 marks)

[Total: 16 Marks]

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