1A) Using the static AD/AS model to explain how the job keeper (wage subsidy) policy worked to sustain the economy even though unemployment rate in Australia had increased during Covid-19 period? 1B) justify in detail the difference between U shaped recoveries and V shaped recoveries?

Q: Using the AD-AS model, show the effects of an increase in government spending assuming the economy…

A: AS-AD model is a way of illustrating national income with respect to changes in price level. AD-AS…

Q: Suppose, initially the Australian economy is atfull employment(in other words the economy is atthe…

A: The Australian economy is at full employment level, it means the aggregate demand (AD) and short-run…

Q: Question 1 In the Keynesian view of the AD/AS model, the SRAS is what shape in the region below…

A: The Keynesian AD/AS model is an economic model that explains the relationship between aggregate…

Q: 4) Using AS-AD model to explain what would happen to the domestic output, unemployment, overall…

A: Since we only answer up to 3 sub-parts (of the first question only), we’ll answer the first 3.…

Q: Consider the AD/AS model. In the long run, after factor prices have fully adjusted to any output…

A: GDP is the total values of all final goods and services provided by a nation during particular…

Q: Covid-19 has a huge impact on aggregate economic activities, please discuss this impact and explain…

A: The Covid-19 has led to the fall in the aggregate demand significantly. It has adversely impacted…

Q: Suppose that the Canadian economy is governed by the following equations Y = Y, - a(r -p)+e; T: = i-…

A: The dynamic Ad As model gives us more knowledge about how the economy works in the long run. The…

Q: The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy used…

A: [a] In a 2-D graph, x-axis or the horizontal one explains the dependent variable whereas y-axis or…

Q: equilibrium. Price Level (base = 100) 100 The Macroeconomy in long- and short-run equilibrium LRAS…

A: The Aggregate Demand-Aggregate Supply (AD-AS) model is an economic model that shows the dynamics…

Q: When the federal government engages in COVID-19 fiscal stimulus such as the Coronavirus Aid, Relief,…

A: The federal government engages in COVID-19 fiscal stimulus such as the Coronavirus Aid, Relief, and…

Q: Suppose the aggregate demand curve shifts leftward from ADO. Where does the economy move initially…

A: In the rigid Keynesian view, the aggregate demand curve shows the total spending in the economy.…

Q: 3. The graph below shows the AD-AS model for the US in long-run equilibrium. Label both axes and the…

A: AS-AD model is a way of illustrating national income with respect to changes in price level. The…

Q: Describe the full employment macroeconomic equilibrium in the As-AD model. what would happen on the…

A: We will answer the first three subparts only. Please resubmit the other parts separately in case you…

Q: Consider the basic AD/AS model. When wage rates rise faster than the increase in labour…

A: Labor productivity refers to the measure of output produced per unit of labor input, typically…

Q: he graph below shows the AD-AS diagram for Spain.

A: Cyclical unemployment: It refers to the ups and downs in the overall employment due to the change in…

Q: 13. Suppose the economy is in a long-run equilibrium. a. Use the AD-AS model to graphically depict…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: How to construct a Ad, SRAS and LRAS curve for economy with.. full employment  Economic boom A…

A: LRAS is vertical at full employment. There is an economic boom when more than full employment output…

Q: Suppose that in 2005, nominal wages decrease in Torania. Show how this event will change equilibrium…

A: The equilibrium output and price level are at a point where SRAS intersects with the AD curve. This…

Q: The COVID-19 pandemic continues to present new challenges to the Australian economy. The Treasury…

A: To fully understand and analyse economic developments, the AD-AS model integrates and pulls together…

Q: Assume that the AD curve intersects the AS curve in the Neoclassical Region and that the government…

A: The intersection of aggregate demand and aggregate supply curve gives the macroeconomic equilibrium…

Q: level LRAS SRAS1 * AD₁ Y₁ = Real GDP potential (Figure: AD-AS Model II) Refer to Figure: AD-AS Model…

A: The AD curve depicts the total quantity(Q) of services and items demanded in an economy at various…

Q: 6. Consider the following AD/AS diagram. Suppose the economy experiences a positive aggregate demand…

A: Macroeconomic monitoring will continue to be important since it dictates the economy's ultimate…

Q: If households decide to save a larger portion of their income, what effect would this have on…

A: The cornerstone of modern economics is macroeconomic analysis, which provides critical information…

Q: Consider a positive shock to demand for goods and services. The demand shock (&) is assumed to…

A: Aggregate Demand represents the total amount of goods and services that all sectors of an economy…