4. Explain to what extent the EU economies are at risk of stagflation during after the post-pandemic period. How could different approaches to supply-side policies contribute to enhancing or making progressively worst the macroeconomic situation? In the process of doing this you can consider different schools of economic thought eg. Demand side v Supply-side atleast of 10000 words and with referencing

Suppose that the u.s. dollars-mexican pesos exchange rate is fixed by the u.s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs.which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u.s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u.s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u.s. dollars.