4) Using AS-AD model to explain what would happen to the domestic output, unemployment, overall price level in the short-run in these following situations. Draw the AS-AD diagram. a) If people feel pessimistic about the future of the economy b) The government raises income taxes c) The exchange rate of VND/USD increases d) The State bank of Vietnam purchases government bond e) The US economy (our most important trading partner) recovers and grows quickly f) The State bank of Vietnam lowers the discount rate
4) Using AS-AD model to explain what would happen to the domestic output, unemployment, overall price level in the short-run in these following situations. Draw the AS-AD diagram. a) If people feel pessimistic about the future of the economy b) The government raises income taxes c) The exchange rate of VND/USD increases d) The State bank of Vietnam purchases government bond e) The US economy (our most important trading partner) recovers and grows quickly f) The State bank of Vietnam lowers the discount rate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please help me these 3 questions
![4) Using AS-AD model to explain what would happen to the domestic output, unemployment, overall
price level in the short-run in these following situations. Draw the AS-AD diagram.
a) If people feel pessimistic about the future of the economy
b) The government raises income taxes
c) The exchange rate of VND/USD increases
d) The State bank of Vietnam purchases government bond
e) The US economy (our most important trading partner) recovers and grows quickly
f) The State bank of Vietnam lowers the discount rate
5) How do policymakers control monetary and fiscal policy to offset the effects on price level caused by
a shift in aggregate supply to the left? What are the negative impacts of this policy? Draw the AS-AD
diagram to illustrate your answer.
6) If the reserve ratio is 10 percent and there is no currency in public's hand, then what is the money
multiplier? What would happen to the money supply if the Central Bank purchase $1 billion of
government bonds? What would happen to the level of output, price, and unemployment rate in
short-run and long-run? Illustrate your answer on the AS-AD diagram.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F24889542-b63c-4fff-b5fe-0ef576c8ef2c%2F15da3197-784e-4656-9d8f-7670bdc5a855%2Feqtwpcr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4) Using AS-AD model to explain what would happen to the domestic output, unemployment, overall
price level in the short-run in these following situations. Draw the AS-AD diagram.
a) If people feel pessimistic about the future of the economy
b) The government raises income taxes
c) The exchange rate of VND/USD increases
d) The State bank of Vietnam purchases government bond
e) The US economy (our most important trading partner) recovers and grows quickly
f) The State bank of Vietnam lowers the discount rate
5) How do policymakers control monetary and fiscal policy to offset the effects on price level caused by
a shift in aggregate supply to the left? What are the negative impacts of this policy? Draw the AS-AD
diagram to illustrate your answer.
6) If the reserve ratio is 10 percent and there is no currency in public's hand, then what is the money
multiplier? What would happen to the money supply if the Central Bank purchase $1 billion of
government bonds? What would happen to the level of output, price, and unemployment rate in
short-run and long-run? Illustrate your answer on the AS-AD diagram.
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