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Question: understanding of the Malaysian macro economy and the effects of Fiscal Policy. These are Some of the highlights of the budget 2020 of Malaysia

Question:understanding of the Malaysian macro economy and the effects of Fiscal Policy.

These are Some of the highlights of the budget 2020 of Malaysia include:

1. The Ministry of Health has been allocated RM 30.6 billion.

2. The Ministry of Education (MOE) received the largest allocation of RM 64.1 billion.

3. RM 524 million have been allocated to boost R&D in the public sector.

Question

  • Critically evaluate those items and discuss the positive as well as negative aspects of each action. These may include economic as well as social aspects.
  • How will it affect the state of the Malaysian economy? Show using graphs of the AD-AS curves.

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