Using the AD-AS diagram, explain the effect of the following on price and real income. (a) Prediction of World War 3 next year (b) Consumers are optimistic about the economy (c) The government has increased sales and service tax (d) The minimum age for working has been reduced [Hint: ZERO marks will be given if there are no diagrams] [25 marks] Question 4 There are three main types of foreign exchange rate systems used globally. Explain all three of them and also indicate which countries use them. [30 marks]