Suppose the ASEAN countries adopt one currency system and fixed exchange rate to achieve greater economic unity.

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Suppose the ASEAN countries adopt one currency system and fixed exchange rate to achieve greater economic unity. Singapore—part of ASEAN—faced an increased export demand. Will it still be profitable for Singapore to continue with the earlier agreement? Explain using the GG-LL Schedules. Suppose Brunei—also part of ASEAN—is not operating at full employment level. How would its employment be affected by a fall in price level, ceteris paribus?

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