QUESTION 1

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 due to the Covid 19 pandemic. This includes Ms. Kiah who sells cakes and bread before the pandemic happens. 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. Ms. Kiah's son, Razak who just graduated from university also unable to get any job while her daughter Milah has despair looking for a job as she believes not much work available during this pandemic.

Based on the situation given:

i)Define unemploymentand identify who can be categorized as unemployed in Ms. Kiah's family.(3 marks)

ii)Explain THREE (3) types of unemployment that can happen to Ms. Kiah, Razak, and Mr. Jamal Abdillah during this COVID19 pandemic.(15 marks)

iii)Briefly explain TWO (2) advantages of doing international trade by relating it to Ms. Kiah's family situation. Provide example of each.(7 marks)

QUESTION 2

To date, the human cost of coronavirus (COVID-19) is more than 13 000000 infections, and more than 570000 death worldwide. The economic cost so far has been staggering. The impact on supply, demand, the financial market is affecting both larger and smaller firms. Central Banks in advanced countries has adjusts their interest rate and started to huge programs to buy bonds and increase the capacity of commercial bank to loan out loans to business and individuals.

i)Describe the economic problem happened based on the given situation. (2 marks)

ii)From your opinion, suggest THREE (3) ways on how the government can use monetary policy in order to stabilize the economy. You are required to give ONE (1) appropriate example for each policy taken.(18 marks)

iii)'Expansionary fiscal policy may help the government to overcome the problem illustrate in the above situation'. Based on your understanding, justify how does the statement will work.(5 marks)