The purpose of this assignment question is to ensure that the students
are able to apply their knowledge on macroeconomic theories to determine optimisation policies in aiding managerial decision-making by the Malaysian governnment.
The UK economy, a £15 trillion giant, which makes up 20% of the world economy, is in trouble, and could drag down world growth. The UK central bank has cut interest rates aggressively and the UK Cabinet is planning an economic stimulus package to prevent a recession.
Based on the above statement, you are required to answer on the following questions:
(1) The definition of "recession" and the technical definition of "recession".
(2) What are the factors contributing to this recession? What are the repercussions to other countries like Malaysia?
(3) Outline all the indicators showing a Malaysia economy are in the beginning of the recession.
(4) Explain in detail all the stimulus packages undertaking by the Malaysian government as well as Central Bank to ward off this recession.
(5) What are the impacts of the recession in the nation's economy?