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1. The COVID 19 pandemic and the associated lockdown has led to an increase in aggregate prices of food in Ghana. Using your understanding of (a) the fundamental causes of inflation, (b) the aggregate demand and aggregate supply curve (LR and SR) shifts, provide your sound reasoning for why this aggregate food price increases could have happened in this season. 4. a. The government of Ghana has gradually outlined measures to ease an opening of the economy. The government is eager to see the economy bounce back. Suppose the government approaches you as a consultant and indicates that they will like to have a very low unemployment, zero inflation and very high GDP growth. How would you advice the government? Be concise in your advice. [10 Marks] b. Business cycles are pervasive in all macroeconomic variables. Does the relative durations of expansions and recessions help explain the fact that long-term economic growth has been positive? [10 Marks]
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