KULLIYAH OF ECONOMICS AND MANAGEMENT SCIENCES

(SEMESTER 1, 2022/2023)

COURSE TITLE/CODE:

INTERMEDIATE MACROECONOMICS 1 (ECON 2310)

SECTION:1

TITLE OF GROUP ASSIGNMENT:

INFLATION STRUGGLES IN CHILE: A MACROECONOMIC ANALYSIS

INSTRUCTOR’S NAME:

PROFESSOR DR. RUZITA BINTI MOHD AMIN

PREPARED BY:

NO. NAMES MATRIC NO.

1. NUR DIYANA BINTI ZUL AZHAR 2018356

2. MAISARAH BINTI MOHAMAD AZLEY 2112472

3. SYAHMIN SYAZANA BINTI SAPARUDIN 2115056

4. CHAIRANI AZIZAH DIVA 2010450

5. OKTA RIZQULLAH DWISATRYA 2019671

 TABLE OF CONTENTS

1. Introduction 1

2.1. Analysis of the article 3

2.1.1. The Money Market 6

2.1.2. The IS-LM schedule 8

2.1.3. Aggregate demand and supply schedule 11

2.1.4. Aggregate labour demand and supply schedule 13

2.1.5. Aggregate Production Function 15

2.2. Analysis from the Islamic perspective 17

3. Conclusion 19

4. References 21

5. Appendix 22

1
 1. Introduction

The article “Even Super-tight Policy is Not Bringing Down Inflation", published by The

Economist, highlights the challenges that “ Hikelandia”, which includes several countries, Chile,

Brazil, Hungary, New Zealand, Norway, South Korea, Peru, and Poland are facing in controlling

inflation despite aggressively raising interest rates over the past years. For instance, the Central

Bank of Chile increased interest rates from 0.5% to 0.75% to curb inflation in July 2021, but in

September, Chile's market prices increased by 14% year-on-year after increasing the policy rate

to 11.25%. The central bank’s preferred "core" inflation measure jumped to 11%, excluding

volatile goods such as energy and food prices.

The article suggests that this experience casts doubt on the experts on the idea that if

other central banks, such as the European Central Bank, had also raised rates quickly last year,

world inflation would not be as high today. It also notes that the aggressive and early tightening

of monetary policy has slowed down the economy in these countries, with property markets

cooling down as mortgage rates rise, New Zealand house prices decline, South Korea house

prices stopped rising and GDP expected to decline next year. Hikelandia’s median economy

increased interest rates by 6 per cent according to the data statistics collected by The Economist,

and on November 2nd, the central bank raised rates by 0.75 per cent.

Additionally, the article implies that inflation in Hikelandia is stubborn and is growing

more scattered, affecting a broader range of goods and services. For example, South Korea's

labour-intensive service industry inflation rate in September was 4.2% year on year, the highest

since the early 2000s, while Hungary's service-industry inflation rate has increased from 7.2% to

11.5% in the last six months. Furthermore, 89% of goods in Norway's inflation basket increased

by 2% yearly, up from 53% six months earlier.

2
 Most importantly, the article suggests three possibilities. First, it is possible that

expecting inflation to decline is now unrealistic and that controlling inflation would be difficult

while most currencies are weakening against the dollar, raising import prices. According to

research, there are delays between tighter monetary policy and decreasing inflation. Second, it is

possible that policymakers may not have been aggressive enough, suggesting that central banks

should have raised interest rates more aggressively. The article suggested that governments

should play a role in reducing inflation by implementing budget surplus, raising taxes, or

reducing government spending to reduce demand, even if this may be risky, as seen by Chile's

failure to lower inflation significantly while forecasting a budget surplus. Third, the article

highlighted the possibility that inflation may be more challenging to control than previously

expected. It is also believed that behavioural changes influence changes in inflation and that

various methods are necessary to control inflation in different norms.

In summary, the article claims that the experience of nations that tightened early and

aggressively in managing inflation puts into question the claim that if other central banks had

increased rates rapidly last year, inflation would not be as high now. Despite aggressive rate

rises, these nations are still unable to manage inflation, which is negatively impacting their

economies, while inflation remains stubborn and growing more scattered. To address this issue

of inflation, we will analyse the article by highlighting the pertinent issues mentioned above and

linking them to the theoretical macroeconomic models in the next section.

3
 2. Analysis

2.1. Analysis of the article

In the article that we have chosen, we choose to delve into the ongoing problem of high

inflation in Chile, despite the implementation of aggressive monetary policy measures such as

raising interest rates. The author suggests that policymakers in Chile have not demonstrated

sufficient courage in their efforts to curb inflation, as suggested by the country's remaining

"Chicago Boys."

This persistent inflation has led to a slowdown in the economy, marked by declining

house prices and accelerating wage growth, creating difficulties for government and banking

agencies to reduce prices swiftly without risking public backlash from austerity measures during

a cost-of-living crisis. Additionally, the article suggests that policymakers in Chile need to be

more decisive in their efforts to address the issue of inflation. Next, the article explicitly

examines Chile's case, where the super-tight policy has failed to bring down inflation. For

instance, the Central Bank of Chile raised rates from 0.5% to 11.25%, yet prices still rose by

14%.

Additionally, it illustrates the experience of Chile with service sector inflation despite the

implementation of aggressive monetary policies. Furthermore, it cites research conducted by

Goldman Sachs on Chile which found evidence that "underlying inflation momentum had picked

up again". These examples demonstrate the difficulties faced by the central bank of Chile and the

government in reducing price rises even when taking extreme measures such as increasing

interest rates significantly higher than normal levels.

4
 Source: Banco Central de Chile

In summary, the author suggests that Chile's experience with super-tight policy highlights

the challenges central banks and governments face in bringing down inflation, even when taking

drastic measures. The article also presents some counterarguments or alternative explanations for

the failure of the super-tight policy to bring down inflation in Chile. One such explanation is that

there may be lags between tighter monetary policies and lower inflation, which could explain

why prices remain stubbornly high despite aggressive rate hikes. Additionally, it suggests that

the depreciation of the Chilean peso against the dollar can make imports more expensive, leading

to higher overall price levels in the country even when the Central Bank of Chile is taking

extreme measures such as increasing interest rates significantly higher than normal levels.

5
Furthermore, the author of the article cites research conducted by the Bank for International

Settlements (BIS) suggesting that households and firms closely tracking inflation over time could

lead to "behavioural changes" that entrench a new norm of high-inflation regimes rather than the

low ones seen before the pandemic crisis began. This research suggests that other factors might

affect the inflation rate in Chile and make it difficult to bring it down.

The author concluded that policymakers in Chile need to be sufficiently courageous when

it comes to raising interest rates, which has led to stubbornly high inflation and a slowdown of

the economy. This conclusion is relevant to the main issue because it suggests that even

aggressive monetary policy measures, such as increasing interest rates, may be insufficient for

bringing down prices quickly without risking public backlash from austerity policies during a

cost-of-living crisis in Chile. Therefore, in this article, we will utilise a macroeconomic

conceptual framework to comprehend and interpret the implications arising from the main issue

discussed in the article, specifically the persistently high inflation in Chile despite the

implementation of aggressive monetary policy measures such as raising interest rates. To do this,

we will examine concepts such as the money market, the IS-LM schedule, the aggregate demand

and supply, the aggregate labour demand and supply, and the production function. These

concepts will be employed to explain how changes in the monetary policy of the Central Bank of

Chile can impact economic activity in the country.

2.1.1. The Money Market

The Central Bank of Chile's monetary policy actions, such as raising interest rates, affect

the money supply in the economy, which is reflected in the LM schedule. The money market

6
schedule shows the relationship between the interest rate and the economy's output level. It also

illustrates how money supply and interest rate changes affect output levels.

In the case of the Central Bank of Chile, their decision to increase their monetary policy

rate effectively decreases the money supply in the economy by making borrowing more

expensive. This leads to a decrease in borrowing, investment, and spending, decreasing

aggregate demand in the economy. This action can be represented by a shift in the money supply

𝑆 𝑆
schedule (in figure 1). A decrease in the money supply schedule from 𝑀0 to 𝑀1, causes the

interest rate to increase from 𝑟0 to 𝑟1, leading to a new equilibrium at the higher interest rate. The

decrease in the money supply also creates an initial shortage of money in the economy. It should

be noted that, as previously mentioned, the decrease in the money supply also leads to a decrease

in aggregate demand.

Figure 1

7
 This decrease in aggregate demand is reflected in the LM schedule in Figure 2, which

shows the relationship between the interest rate and the level of output in the economy. It can be

𝑆
observed as a shift in the LM schedule from point A, at the initial money supply (𝑀0) and

𝑆
interest rate (𝑟0), to point B, at the new money supply (𝑀1) and interest rate (𝑟0). As the money

supply decreases, the LM schedule shifts upward and to the left, resulting in increasing the

equilibrium interest rate and a decline in the level of income in the IS-LM schedules.

2.1.2. The IS-LM schedule

In Figure 2, we present the IS-LM model, which combines the LM and IS schedules. The

interest rate is illustrated on the vertical axis, and income is illustrated on the horizontal axis. The

upward-sloping LM schedule depicts the points of equilibrium for the money market, while the

downward-sloping IS schedule illustrates the equilibrium points for the product market.

Furthermore, the intersection point between the two schedules, point A in Figure 2, represents

the initial equilibrium for both markets. Additionally, factors that alter these equilibrium levels

are those that shift either the IS or the LM schedule. In this case, a decrease in the money supply

results in a shift of the LM schedule.

( )
In figure 2, we assume the initial IS and LM schedules are 𝐼𝑆0 and 𝐿𝑀0 𝑀0 . Income and

the interest rate are at 𝑌0 and 𝑟0, respectively. To construct the schedules based on the Central

bank of Chile's action, producing these results is straightforward. To begin with, we set the initial

equilibrium at interest rate 𝑟0 and income level 𝑌0. Next, a decrease in the money supply from

8
 ( ) ( )
𝑀0 to 𝑀1 will shift the LM schedule to the left from 𝐿𝑀0 𝑀0 to 𝐿𝑀1 𝑀1 . The interest rate

rises from 𝑟0 to 𝑟1, and income falls from 𝑌0 to 𝑌1.

Figure 2

Additionally, to explain the effects of a decrease in the money supply from 𝑀0 to 𝑀1, the

decline in the money supply creates a shortage of money, which causes the interest rate to

increase. Furthermore, as the interest rate rises, investment is decreased, and this decrease causes

income to fall, with a further income-induced decrease in consumption. In other words, the LM

schedule shifts to the left, causing the equilibrium income to fall and the equilibrium interest rate

to rise.

9
 Next, in figure 2, we also use the IS–LM model to analyse further the effects of monetary

policy actions on income and interest rate. Additionally, the magnitude of the effects of monetary

policy is also examined, based on the slopes of the LM schedule. The IS-LM model is used to

qualitatively evaluate the effectiveness of monetary policy. By effectiveness, we mean the size of

the effect on the income of a given change in the policy variable. The crucial parameter

determining the slope of the IS schedule is the (absolute value of the) interest elasticity of

investment. Meanwhile, the crucial parameter determining the slope of the LM schedule is the

(absolute value of the) interest elasticity of money demand. The concept of elasticity refers to the

percentage change in one variable that results from a 1% change in another variable. High

elasticity refers to a high absolute value of elasticity, while low elasticity refers to a low absolute

value of elasticity.

In the case of Chile, the monetary policy action is a decrease in the money supply, which

shifts the LM schedule from 𝐿𝑀0 to 𝐿𝑀1. In this case, the LM curve would have a steeper slope,

which implies that a change in interest rate will significantly impact output and employment.

This means that monetary policy can more effectively control inflation or curb economic growth.

However, it does not necessarily mean that a tight monetary policy is effective. Meanwhile, this

would result in a flatter slope of the IS curve with the assumption that this tight monetary policy

is ineffective in curbing inflation. This is because, as the interest rate increases, the decrease in

investment demand would be relatively small, resulting in a smaller decrease in aggregate

demand and output. In conclusion, a steeper slope of the LM curve implies that the economy is

more sensitive to changes in interest rates. Thus, monetary policy would have a more substantial

impact on output and employment. Meanwhile, a flatter slope of the IS curve implies that the

10
economy is less sensitive to changes in interest rates. Thus, monetary policy would have a

weaker impact on aggregate demand and output.

2.1.3. Aggregate demand and supply schedule

In the case of Chile, the Central Bank's implementation of a tight monetary policy aimed

at curbing inflation has increased the prices of goods and services and wages. This is consistent

with the predictions of the Classical Theory of Aggregate Supply, which suggests that increases

in wages can lead to inflationary pressures as firms need to raise prices to remain profitable.

However, this tight monetary policy has been ineffective in achieving its goal of price

stability as inflation persists. This can be seen through the lens of the Keynesian Aggregate

Demand Schedule, which states that an increase in aggregate demand leads to higher levels of

economic activity and growth. However, in this case, the increase in prices and wages has led to

a decrease in aggregate demand, resulting in lower economic activity and growth levels.

In the aggregate demand and supply schedule (as shown in figure 3), the level of price of

goods and services is represented on the vertical axis, whereas the level of output is represented

on the horizontal axis. Initially, the equilibrium is at the price level, 𝑃0 and output level, 𝑌0 (at

point A). Upon the Central Bank of Chile's implementation of an increase in the monetary policy

rate, aggregate demand is likely to decrease. This is because higher interest rates make

borrowing money for investment and consumption expenditure more expensive, resulting in

individuals saving their money instead of spending it on goods or services.

11
 Figure 3

𝐷 𝐷
As a result, the decrease in aggregate demand causes output to fall from 𝑌0 to 𝑌1 , and the

price level to decrease from 𝑃0 to 𝑃1. This is due to the lower level of production needed by

businesses as fewer consumers are buying their products. Thus, the price level falls, and a new

equilibrium is reached at point B.

However, despite the decrease in aggregate demand, there may also be some changes in

aggregate supply due to the increase in prices and wages resulting from the Central Bank of

Chile's ineffective monetary policy that fails to curb inflation and achieve price stability.

Specifically, the increase in prices and wages leads to increased production costs for firms,

𝑆 𝑆
causing the aggregate supply curve to shift upward and to the right from 𝑌1 to 𝑌2. This results in

in a new equilibrium point, point C, with an increased output level and a higher price level at 𝑃2.

12
It is worth noting that the Central Bank of Chile's tight monetary policy may have contributed to

the increase in wages, which in turn affects the aggregate supply curve.

2.1.4. Aggregate labour demand and supply schedule

Aggregate Labour Demand and Supply Schedule illustrates the relationship between

changes in the demand for labour and the corresponding effects on wages, employment levels,

and prices. An increase in labour demand, such as increased economic activity or population

growth, leads to higher wages as employers compete for workers, ultimately resulting in

inflationary pressures as companies raise prices to remain profitable. Conversely, a decrease in

aggregate supply, such as from decreased economic activity or population decline, can cause

deflationary pressures as fewer jobs are available, reducing overall consumer spending power

and diminishing demand for goods and services.

In the case of Chile, the Central Bank of Chile's tight monetary policy to curb inflation

has increased the prices of goods and services and wages. This is in line with the Aggregate

Labour Demand and Supply Schedule, as the increase in production costs for firms, driven by

higher wages, leads to higher prices for goods and services. However, this policy has been

ineffective in curbing inflation, highlighting the need for a more comprehensive approach to

addressing this issue.

The labour market equilibrium is a representation of the relationship between the quantity

of labour supplied and demanded as a function of the money wage. Two assumptions implicit in

this classical representation are perfectly flexible prices and wages and perfect information on

the part of all market participants about market prices.

13
 In Figure 4, we plot labour supply and labour demand on the horizontal and vertical axis,

0 0
respectively, with the initial equilibrium at the wage rate of 𝑊 and employment level of 𝑁 (at

𝐷 𝑆
point A). In the aggregate, labour supply equals labour demand, 𝑁 = 𝑁 . Given the money

wage, the firm will choose the level of employment at which 𝑊 = 𝑀𝑃𝑁 • 𝑃 that can achieve its

profit maximisation goal.

Figure 4

However, in the case of Chile, the action of the Central Bank of Chile implementing a

tight monetary policy led to an increase in the overall price level. This increase in prices puts

upward pressure on wages, as firms may need to raise wages in order to attract and retain

14
workers. As a result, when workers' wages rise, it increases production costs for firms. This

𝐷
causes the labour demand curve to shift downward (from 𝑁0 = 𝑀𝑃𝑁 • 𝑃0 to

𝐷
𝑁1 = 𝑀𝑃𝑁 • 𝑃1 ), decreasing the quantity of labour demanded and increasing unemployment.

Meanwhile, the number of workers willing to work remains unchanged, causing the labour

supply curve to remain unchanged, moving toward a new equilibrium point, point B, with a

higher wage level but a lower quantity of labour demanded. This is the implication of the

ineffective tight monetary policy imposed by the Central Bank of Chile.

2.1.5. Aggregate Production Function

A production function of a firm or business creates a link between the inputs used and the

maximum number of outputs that can be produced. In other words, the production function is the

relationship showing how inputs and outputs are related to one another for any given quantity of

inputs given and the maximum number of outputs produced throughout the production process.

In the short run, the stock of capital is assumed to be fixed, as indicated by the bar over the

symbol for capital. The state of technology and the population are also assumed to be constant

over the period considered. For this short-run period, the output varies solely with variations in

the labour input (N) drawn from the fixed population.

When the Central Bank of Chile increases their monetary policy rate, it leads to an

increase in wages as the price of goods and services also increases. As a result, production costs

also increase, and firms need to reduce the number of products produced in order to control the

cost of production. This situation then leads to other consequences, such as a decrease in the

15
amount of labour hired as firms have to cut costs for inputs due to the production of fewer goods,

a decrease in profits gained, and a decrease in investment.

Figure 5

All of the effects mentioned above can be illustrated through the production function

graph in Figure 5. The production function is stated as Y = F (K, N), where Y represents output,

K represents capital, and N represents labour. The output is represented in the vertical axis while

labour or employment is represented in the horizontal axis. In this case, we are using this graph

to show the effects of an increase in nominal wage that is caused by the action of the Central

Bank of Chile in tightening their monetary policy. The curve is upward-sloping, indicating the

positive relationship between output and labour.

16
 As can be seen from the graph, the amount of labour decreases from 𝑁0 to 𝑁1, and the

income also decreases from 𝑌0 to 𝑌1 which results from lesser labour hired due to increase in

production cost and lesser outputs can be produced.

2.2. Analysis from the Islamic perspective

Inflation is a persistent problem that has plagued many economies throughout history,

including the Hikelandia. In recent years, several countries have implemented monetary policies,

such as raising interest rates, in an attempt to curb rising inflation. However, as highlighted in the

article “Even super-tight policy is not bringing down inflation” by The Economist (2022), these

efforts have not been entirely successful. This raises questions about the effectiveness of

traditional monetary policies in controlling inflation and highlights the need for alternative

solutions, specifically in accordance with Islamic principles.

In the second possibility proposed in the article, the central bank should raise interest

rates more aggressively to lower inflation. However, from an Islamic perspective, the idea of

raising the interest rate to combat inflation is concerning. Islamic economics prohibits charging

or paying interest, as it is considered usury and exploitative. Instead, Islamic economics

promotes the concept of "risk sharing," where profits and losses are shared between the lender

and borrower. In the Holy Qur'an, Allah Almighty explicitly forbids the element of interest,

known as riba'. Riba' is the interest rate at which money is viewed as a commodity, resulting in

the accumulation of wealth in only a few hands, which then results in wealth inequality in the

whole economy (Farouq, 2012). In Islamic Shariah, there is no difference between interest and

17
usury. Rather than a commodity, money is seen as a medium of exchange in Islam. As a result,

both collecting and paying interest are forbidden in Islam, let alone adopting an entire monetary

policy based on adjusting interest rates to alleviate economic problems such as inflation, as done

by the countries in Hikelandia mentioned in the article (The Economist, 2022).

In addition to the prohibition on interest, the reliance on price stability as the fundamental

purpose of monetary policy may not align with Islamic principles. According to the article, the

Central Bank of Chile's determination to control inflation resulted in interest rate increases,

which may have had a negative impact on the economy. On the other hand, policies that promote

the interests of the rich at the expense of the poor and underprivileged are not acceptable from an

Islamic perspective. In economic decision-making, Islamic economics highlights the significance

of social justice and fairness, and it is important to balance the objective of controlling inflation

with the welfare of the entire society.

The issue can be addressed by adopting a more fair, equitable, participatory and inclusive

approach to monetary policy that considers the opinions and needs of all individuals in society.

For instance, the policymakers could involve representatives from various sectors of society,

such as employees, agriculture, consumers, and entrepreneurs, in the establishment of a better

monetary policy. Furthermore, an inclusive and participatory approach may consist of using

alternative indicators, including well-being and poverty measurements, to drive monetary policy

decisions rather than relying simply on conventional indicators like GDP and inflation. This

might guarantee that the central bank's monetary policy decisions are consistent with the

principles of Islamic economics, which include social justice and fairness.

18
 3. Conclusion

In conclusion, the study of the article discusses the claim that the current level of inflation

would not be as high if other central banks had raised rates swiftly last year is disputed by the

research, which points to the experiences of nations that tightened early and aggressively to

control inflation. Because of their incapacity to contain inflation, which persists and grows

despite large rate rises, these nations' economies are suffering. This finding is relevant to the

main issue because it suggests that even aggressive monetary policy measures, like rising interest

rates, could not be sufficient to quickly cut prices without running the risk of a negative public

response in Chile during a cost-of-living crisis. As a result, Chile is still struggling to keep

inflation under control, which has a detrimental impact on the economy.

By addressing some concepts and matching them with each model that can adequately

describe the issue from a macroeconomic perspective, we are able to tie the crucial components

that should be prioritised in the fight against inflation to the components in the theoretical

macroeconomics models. Every topic is described by connecting it to a specific problem that was

obtained from the article, by drawing graphs, and by describing the movement of the points and

curves that indicate the effects of the monetary policy used to address the problems.

The money market, is the first topic mentioned which is reflected in the LM schedule and

links the interest rate to the level of the economy's output, is the first idea mentioned. Second, the

IS-LM schedule shows the points at which the money and product markets reached equilibrium

as interest rates rose and the money supply shrank. Thirdly, the aggregate demand and supply

schedule illustrates the connection between the price of goods and services and output level. The

decrease in aggregate demand brought on by an increase in the monetary policy rate leads to a

reduction in output. On the other hand, the aggregate labour and demand supply schedule depicts

19
the link between the amount of labour that is supplied and demanded, as well as the wages. The

highest profit-generating level of employment is the one that the firm seeks to select. Last but not

least, the production function emphasises the connection between the quantity of inputs and

outputs used during the production process. The reduction in the quantity of inputs and outputs

used as a result of pay increases production costs.

Finally, after going through each issue and its associated macroeconomics concept, what

we can learn from an Islamic perspective in order to solve the issues mentioned is the

significance of using practical solutions that implement a just and equitable policy and give

priority to societal needs in achieving well-being and combating poverty through the application

of decisions and policy that are consistent with Islamic economic principles, to achieve economic

stability.

20
 4. References

Banco Central de Chile. (2023). Banco Central de Chile - Statistics Database. Banco Central de

Chile Website.

https://si3.bcentral.cl/Siete/en/Siete/Cuadro/CAP_TASA_INTERES/MN_TASA_INTERES

_09/TPM_C1

Froyen, R. T. (2013). Macroeconomics: Theories and Policies (D. Battista, D. Alexander, L.

Dent, T. Cooper, L. Sloan, E. Brodeur, & N. Fenton, Eds.; Tenth Edition). Person Education

Limited.

https://www.ascdegreecollege.ac.in/wp-content/uploads/2020/12/Macroeconomics-Theories

-and-Policies.pdf

Farooq, M. (2012). Interest, Usury and its Impact on the Economy. Dialogue (Pakistan), 7(3),

266–276.

https://www.qurtuba.edu.pk/thedialogue/The%20Dialogue/7_3/Dialogue_July_September2

012_265-276.pdf

The Economist. (2022, October 23). Even super-tight policy is not bringing down inflation. The

Economist Newspaper.

https://www.economist.com/finance-and-economics/2022/10/23/even-super-tight-policy-is-

not-bringing-down-inflation

21
5. Appendix

22
23
24
25
References:

The Economist. (2022, October 23). Even super-tight policy is not bringing down inflation. The

Economist Newspaper.

https://www.economist.com/finance-and-economics/2022/10/23/even-super-tight-policy-is-

not-bringing-down-inflation

26
 REPORT ON TEAM MEMBER CONTRIBUTIONS IN PROJECT COMPLETION

NO. NAMES MATRIC INDIVIDUAL WORKS PERCENTAGE

NO. (%)

1. NUR DIYANA BINTI 2018356 2. a. Analysis of the article: 40%

ZUL AZHAR ● The money market
● The IS-LM schedule
● The Aggregate
Demand and Supply
● The Aggregate labour
supply and demand

2. MAISARAH BINTI 2112472 1. Introduction 30%

MOHAMAD AZLEY 2. b. Analysis from Islamic
perspective

3. SYAHMIN SYAZANA 2115056 2. a. Analysis of the article: 30%

BINTI SAPARUDIN ● Aggregate production
function
3. Conclusion

4. CHAIRANI AZIZAH 2010450 (Missing in Action) 0%

DIVA

5. OKTA RIZQULLAH 2019671 (Missing in Action) 0%

DWISATRYA

TOTAL (%) 100%

Prepared by:

Nur Diyana binti Zul Azhar (2018356)