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Q19 19a) Explain what are automatic stabiliser using ONE example of an automatic stabiliser (4 marks). 19b) Economy is at point A as shown

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Q19 19a) Explain what are automatic stabiliser using ONE example of an automatic stabiliser (4 marks). 19b) Economy is at point A as shown in the diagram below. If the government increases its spending by $100, explain the effect of this increase in the short run and in the long run. (6marks) Price level PA B LRAS C D G EL F EL AD YA AD3 AD1 Real GDP

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