(Figure: Economy in Distress) Figure: Economy in Distress This country, currently at Point C, has approached the IMF for a loan. Critics of the IMF's recovery packages claim that their austerity recommendations for monetary and fiscal policy worsen recessions. Using the diagram, explain their argument.

Question

(Figure: Economy in Distress) Figure: Economy in Distress  This country, currently at Point C, has approached the IMF for a loan. Critics of the IMF's recovery packages claim that their austerity recommendations for monetary and fiscal policy worsen recessions. Using the diagram, explain their argument.

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The Answer of (Figure: Economy in Distress) Figure: Economy in Distress  This country, currently at Point C, has approached the IMF for a loan. Critics of the IMF's recovery packages claim that their austerity recommendations for monetary and fiscal policy worsen recessions. Using the diagram, explain their argument.