With the recent financial turmoils affecting two large US companies namely Lehman Brothers and American International Group (AIG), the world economy is heading towards an economic uncertainty on a global scale.
The downturn in the U.S. economy has already affected industries and economies worldwide. If the U.S. economy enters a recession, what will the likely impacts be and how will these changes affect your business and markets?
We learn about Aggregate Demand and Aggregate Supply, how would these latest developments shift the curves?
Household consumption will fall amidst the negative expectation of the economy next year.
Firms will cut down the expansion plans, planned investment falls as a result Aggregate Demand of the economy shifts to the left.
How would this affect our Malaysian economy?
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