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'What if' the Fijian economy is in recession and policymakers decides to lower interest rates in an effort to stabilize the economy. Using an aggregate

'What if' the Fijian economy is in recession and policymakers decides to lower interest rates in an effort to stabilize the economy. Using an aggregate supply and demand diagram, demonstrate the effects of a monetary easing when the transmission mechanisms are functioning normally and when the transmission mechanisms are weak, particularly during this economic downturn.

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