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  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  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.

Figure: Economy in Distress This Country,currently at Point C,has