You have been appointed as Economics Advisor to your government to help address the recession and the drastic impact of COVID19 to the economy. The economic indicators have been rather bleak with unemployment rising, output figures dropping, GDP rate declining into a negative area but retails prices for basic necessities kept on rising.

By relating to the scenario in your own country:

1.What is the Philips curve and how it relates to the trade off between Inflation and output?

2.How do central bank monetary policies affect interest, inflation, unemployment and growth in an economy?

3.How does Taylor principle and liquidity trap affect economics performance?

4.How will exchange rate fluctuation affect an economy over short and long term?

5.What will be your recommendation to the government to turnaround the economy?