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Question 3 a. Define "recession". Explain the mechanism by which high inflation can create a recession in a country. (4 marks) b. If annual real GDP growth is 3% and the annual inflation rate at 6.1%, what was the nominal GDP growth rate? Is continuous economic growth desirable? Why or why not? (4 marks) c. To reduce the inflationary pressure in an economy, what kind of monetary policy can be taken by the central bank of that country? (2 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I US Paragraph Open Sans, S... v 10pt EV A V E EEXX X EX +