1. Macroland is recognized as a high-income economy by the World Bank. The country of Macroland is now in a recession. a. Using a correctly labeled graph of the long run aggregate supply, short run aggregate supply, and aggregate demand curves and show each of the following: i. Current price level, labeled PL1 ii. Current output, labelled Y1 b. Assume that Braveland, a major trading partner of Macroland, enters into a recession. i. Explain the effect on Macroland exports to Braveland ii. On your graph in part (a) above, show the effect of the change identified in part (b) (i) above on real output in Macroland. iii. How would this change in real output in Macroland affect unemployment in Macroland?
1. Macroland is recognized as a high-income economy by the World Bank. The country of Macroland is now in a recession.
a. Using a correctly labeled graph of the long run
i. Current
b. Assume that Braveland, a major trading partner of Macroland, enters into a recession.
i. Explain the effect on Macroland exports to Braveland
ii. On your graph in part (a) above, show the effect of the change identified in part (b) (i) above on real output in Macroland.
iii. How would this change in real output in Macroland affect
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