Briefly discuss (2 marks) Inflation above 2-3 percent may be harmful for the economy as it reduces the value of money. (3 marks) Start from Point A, demonstrate how the quantity of aggregate output supplied responds to the fall in prices of final goods and services using the figure below? LRAS0 P SRAS0 A P0 AD0 P1 Y Y0 In the short-run, the supply curve of the firm will remain unchanged.