Student name: Azimov Saiddzhon

Student ID: FIB19096153

Subject: Macroeconomics

Assignment (part 2)
Question 1
If the Malaysian economy fell into a serious recession, based on your
point of you, what could the government do to counteract that
recession?

Answer.
On the home front, Malaysia is exceptionally powerless against the
worldwide financial log jam. Being an exchange dependent nation, with
exchange representing 131% of its (GDP) in 2018 as indicated by the
World Bank, Malaysia has an insignificant possibility - assuming any - to
get away from a downturn if the world dives into monetary disturbance.
All things considered, a few significant exchanging accomplices of the
nation have been seriously influenced by Covid-19. These incorporate
China, the United States, and Singapore. The Malaysian finance ministry
has already been taken some projects for the pandemic secession. It also
suggested that the government provide incentives for households with
medium and upper incomes to invest or spend on large-ticket items
such as property, transport vehicles, and durable goods.This is on the
grounds that private utilization represents almost 60% of the Malaysian
GDP and such impetuses would invigorate spending and thusly uphold
the neighborhood businesses. Given the current macroeconomic
difficulties, Manoharan of the Alliance Bank has concentrated on the
direct need for a recalibration of Budget 2020, in particular, to assist the
core areas impacted by headwinds.

Question 2
There are always gainers and losers from inflation and deflation. Discuss.
Comment which is more damaging for the economy as a whole and why?

Answer.
Sudden expansion self-assertively reallocates abundance starting with
one gathering then onto the next gathering, for example, from borrowers
to banks. At the point when individuals choose to get cash or loan cash,
they regularly consider what they figure the pace of expansion will be.
At the point when the pace of swelling is not the same as envisioned, the
measure of premium reimbursed or procured will likewise be not the
same as what they anticipated.

Unforeseen disinflation or collapse, when the expansion rate is lower

than it was required to be (or even negative), has the contrary impact as
unexpected swelling: moneylenders are aided and borrowers are
harmed.

Most approaches that target swelling are pointed toward keeping up

little and unsurprising paces of expansion. Expansion that is excessively
near zero risks getting negative, and flattening turns into a chance.
Flattening has an exceptionally harming sway on an economy and is
related with especially serious downturns and melancholies. On the off
chance that you catch wind of policymakers looking at "bringing down
swelling," their goal is hindering the pace of expansion (at the end of the
day, disinflation), not collapse.

Question 3
What do you understand by cross country income inequalities? Do you think
what gives rise to such inequalities?

Answer.
Economic inequality is the distinction as far as financial prosperity
between nations. The issue of financial imbalance identifies with the
ideas of value, equity of results and correspondence of chance.
On account of expanding exchange among nations, laborers in more
extravagant nations face a more elevated level of rivalry from those in
more unfortunate nations, particularly in occupations that don't need a
significant level of expertise. Wages for low-talented work in more
extravagant nations are decay subsequently.