Question

write an essay discussing the economic impacts of the shock on turkey's economy. in your article, discuss the effects of this economic shock on Turkish economy using the concepts of GDP, GROWTH, INFLATION, UNEMPLOYMENT, MONEY MARKETS, INTEREST RATES, AGGREGATE SUPPLY AND AGGREGATE DEMAND. use a narrative based on the economic theories we saw in the course. connect your ideas to each other with scientific background . give policy suggestions to shorten the effect of this shock on Turkish economy. while giving the policies keep in mid and state the constraints that the Turkish economy is currently facing.

Answer 1

Turkeys economy has faced wide issues like low credit availability, high unemployment, low disposable incones, low consumption and spending, falling aggregate demand and subsequently fall in real GDP and Inflation.

Moreover, this has propelled central bank to adopt expansionary monetary policy by reducing interest rates, declin ein CRR and SLR and liquidity coverage ratio cuts. Government too has been compelled to indulge in higher government spending and lower taxes and run automotic stabilizers to boost the economy from shock and recession.

However Turkey faces huge political instability and terrorism like situation coupled with global uncertainty which would make implementation of above policies a big task.

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