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Q.2 A. Suppose that Covid -19 outbreak in a country leads to 60 % decrease in aggregate output What would likely happen to money market

Q.2 A. Suppose that Covid -19 outbreak in a country leads to 60 % decrease in aggregate output What would likely happen to money market equilibrium ? Explain with diagram . No marks without diagram . B. Assume a developing country gets inflation under control and the inflation rate decreases substantially . What would happen to money market equilibrium ? Explain with diagram . No marks without diagram . Marks : 4

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