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(Solved): QUESTION 4 (20 MARKS)   Economic Recession 1985/86 The worldwide recession in 1981/82 hurt ...



QUESTION 4 (20 MARKS)

 

Economic Recession 1985/86

The worldwide recession in 1981/82 hurt the Malaysian economy. As Malaysia’s economy us openly related to the world, the real GDP declined from 7.6% in 1984 to 6.6% in 1985. It has caused the growth dampened and investment slow down. 

 

  1. Discuss THREE (3) factors that caused to the 1985/86 economic recession.

                                                                                                                        (10 marks)

  1. Elaborate FOUR (4) remedies for the economic recession 1985/86

 (10 marks)



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1.Three factors that caused to the 1985/86 economic recession. => Pessimistic consumers, the debt accumulations of the 1980s, the jump in oil prices after Iraq invaded Kuwait, a credit crunch induced by overzealous banking regulators, and attempts by
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