Question in the attached image The primary goal of effective macroeconomic policies is to reduce uncertainty and risk ineconomic decision-making and maintain healthy levels of economic growth and minimizeprice changes. What would be the response by the government for the following events andwhy?a) In March 2021, the inflation rate for Malaysia was 1.7 %. The inflation rate of Malaysiaincreased from -2.9 % in April 2020 to 1.7 % in March 2021 growing at an averageannual rate of 149.69%.b) The labour market is expected to remain pressured in the near term on the back ofsurging COVID-19 cases and the reimposition of nationwide Movement Control Order(MCO 3.0).c) The survey shows that 84.5% of small and medium enterprises (SMES) will besignificantly affected by MCO 3.0. If the same type of measures that were enacted duringMCO1.0 are exacted in MCO 3.0, more than 40% of SMES will be in dire financial straitsand two million jobs will be lost.c) Many small and medium enterprises (SMES) proprietors have long stopped takingsalaries, curtailed operating expenditure and reduced staff to the minimum to ensuretheir survival.

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The primary goal of effective macroeconomic policies is to reduce uncertainty and risk in economic decision-making and maintain healthy levels of economic growth and minimize price changes. What would be the response by the government for the following events and why? a) In March 2021, the inflation rate for Malaysia was 1.7 %. The inflation rate of Malaysia increased from -2.9 % in April 2020 to 1.7 % in March 2021 growing at an average annual rate of 149.69%. surging COVID-19 cases and the reimposition of nationwide Movement Control Order (MCO 3.0). c) The survey shows that 84.5% of small and medium enterprises (SMES) will be significantly affected by MCO 3.0. If the same type of measures that were enacted during MCO1.0 are exacted in MCO 3.0, more than 40% of SMES will be in dire financial straits and two million jobs will be lost. c) Many small and medium enterprises (SMES) proprietors have long stopped taking salaries, curtailed operating expenditure and reduced staff to the minimum to ensure their survival.

The primary goal of effective macroeconomic policies is to reduce uncertainty and risk in economic decision-making and maintain healthy levels of economic growth and minimize price changes. What would be the response by the government for the following events and why? a) In March 2021, the inflation rate for Malaysia was 1.7 %. The inflation rate of Malaysia increased from -2.9 % in April 2020 to 1.7 % in March 2021 growing at an average annual rate of 149.69%. surging COVID-19 cases and the reimposition of nationwide Movement Control Order (MCO 3.0). c) The survey shows that 84.5% of small and medium enterprises (SMES) will be significantly affected by MCO 3.0. If the same type of measures that were enacted during MCO1.0 are exacted in MCO 3.0, more than 40% of SMES will be in dire financial straits and two million jobs will be lost. c) Many small and medium enterprises (SMES) proprietors have long stopped taking salaries, curtailed operating expenditure and reduced staff to the minimum to ensure their survival.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 34P: The total price of purchasing a basket of goods in the United Kingdom over four years is: year...

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