Read sections 1 and 2 of "Mexico: Economic Policy Guidelines for 1998."

Questions

1. According to this document, what components of aggregate demand were primarily responsible for the increase in output in 1997?
2. If the predictions in Section 2.2 of this report are correct, what will happen to aggregate demand?
3. If the predicted levels of investment for 1998 materialize, what will be the impact on long-run aggregate supply?