QUESTION 1

a)SuggestFOUR (4)ways on how the government can use fiscal policy and monetary policy in order to stabilize the economy. You are required to giveONE (1)appropriate example for each policy taken. (25 Marks)

b)With the aid of diagrams, explain how the measures that were taken may have increased the level of aggregate demand in our economy. Your explanation should also relate tothe ability of a commercial bank in creating more creditafter the policy implementation.(25 Marks)

QUESTION 2

At a time when everything seems to be falling during the pandemic, whether global oil prices, gross domestic product or the global economy, there are a few macroeconomic indicators in which values are rising, one of which is unemployment. The Department of Statistics Malaysia (DOSM) released the results of a survey titled "The Effects of Covid-19 on Economic and Individuals (Round One)" found that almost 47% of self-employed workers had lost their jobs.

This includes Ms.Kiah who sells cakes and bread before the pandemic happens. Ms.Kiah's son, Razak, who just graduated from university also unable to get any job during this pandemic. Her husband Mr.Jamal Abdillah lost his job as a sales advisor as he doesn't have any required skills to manage sales using an e-commerce platform which is crucial for his company during this pandemic.

a)Based on the situation given, explainTHREE (3)types of unemployment that can happen to Ms.Kiah, Razak, and Mr.Jamal Abdillah during this COVID19 pandemic. (25 Marks)

b)Briefly explainTWO (2)advantages of doing international trade by relating it to Ms.Kiah's family situation.(25 Marks)