BBM202: Though most countries in the world use the Gross Domestic Product (GDP) as an indicator of the well-being of the nation: Macroeconomics Assignment, WOU, Malaysia

Using the AD-AS diagram, explain the effect of the following on price and real
income.

• Prediction of World War 3 next year
• Consumers are optimistic about the economy
• The government has increased sales and service tax
• The minimum age for working has been reduced

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.