nomic growth in your country. In your recommendations, you should specify if your country is a developed country or a developing country. Suggest two policies based on what you learned in the course. 5. Explain two reasons why high and unpredictable rate of inflation is bad for an economy? 6. Using AS-AD model explain how GDP, price level and unemployment change if investors become optimistic about future and increase their investments? 7. a. How do commercial banks create money? b. Why central banks cannot perfectly control supply of money