The Singapore Government has taken various fiscal policy measures to manage the economic impacts of the COVID-19 pandemic and support the economy through the pandemic-induced recession.]

(a) [We learnt in class that fiscal policy measures mainly work through the Aggregate Demand side of the economy in the short run. Discuss two macroeconomic effects that affect the size and the direction of the shift in Aggregate Demand (50 wrds total). Provide a diagram to illustrate these effects. (4 marks)]

Your answer:

Please give diagram