4. Draw the aggregate demand and aggregate supply graphs in a three-panel model: In the first graph, showaggregate demand on the graph and aggregate supply in the immediate short run. In the second graph,again show aggregate demand, but this time show aggregate supply in the short run. Finally, in the lastpanel, show aggregate demand and aggregate supply in the long-run. Be sure to label each axis and eachcurve in each graph. (Be careful not to leave this section too brief: to get a full score on it, you should writeno less than two paragraphs on this topic alone. The graphs you prepare should be referred to in the paperas exhibits.)

Exhibit 2: The short run states that in a certain period in the future , one input is fixed while…

Answered: 4. Draw the aggregate demand and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1a) what is the difference between local macroeconomics and global macroeconomics? 1b) Give example(s) of local macroeconomics issues and global macroeconomics issues
Pls help with this homework
15
6. Macroeconomic equilibrium and the ranges of the aggregate supply curve The following graph shows the aggregate demand (AD₁) and aggregate supply (AS) curves for a hypothetical economy with Natural Real GDP of $11 trillion. ? The Simple Keynesian Model AD₁ 130 125 120 115 110 105 100 95 90 8.0 8.5 9.0 11.5 12.0 9.5 10.0 10.5 11.0 REAL GDP (Trillions of dollars) Suppose consumers and businesses become less optimistic about future economic conditions, causing aggregate demand to decrease by a total $1.5 trillion at each price level (after all multiplier effects have taken place). On the previous graph, use the green line (triangle symbol) to show the new aggregate demand curve (AD2). Be sure that AD2 is parallel to AD₁ (you can mouse over AD₁ to see its slope). Then use the black drop lines (cross symbol) to indicate the new macroeconomic equilibrium after the shift of aggregate demand. range of the aggregate supply curve, causing the equilibrium price The decrease in aggregate demand…
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6. Nonprice-level determinants of aggregate supply The lowing graph shows an increase in aggregate supply (AS) in a hypothetical economy. Specifically, aggregate supply shifts to the right from AS1 to S₂, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion. PRICE LEVEL (CPI) 175 150 125 100 75 50 25 0 0 50 AS, 100 150 200 250 REAL GDP (Billions of dollars) 300 350 AS₂ 400 ©
8- India and China are the two major economies in the Asian continent. Both countries have a trillion-dollar GDP. Suppose to calculate the GDP of the year 2021, India has decided to use the prices and quantities of the year 2021 whereas China decided to use the prices of 2020 and quantities of 2021. You are required to answer the following. a) What the strategy adopted by India to calculate the GDP of the country. b) What the strategy adopted by China to calculate the GDP of the country. c) Which strategy is better? Why?
Solve the following questions.
How to solve this problem?
change in real GDP arising from the $700 billion in payments. b. Illustrate the effect on real GDP with the use of a graph depicting the income-expenditure equilib- rium. Label the vertical axis "Planned aggregate spending, AEplanned" and the horizontal axis "Real GDP." Draw two planned aggregate expenditure curves (AEplanned1 and AEplanned2) and a 45-degree line to show the effect of the autonomous policy change on the equilibrium.
3. Why the aggregate demand curve slopes downward The graph below shows the aggregate demand (AD) curve for a hypothetical economy. At point X, the quantity of output demanded is $500 billion, and the price level is 120. Moving up along the AD curve from point X to point Y, the quantity of output demanded falls to $300 billion, and the price level rises to 140. PRICE LEVEL 170 160 150 140 130 120 110 100 90 Y X AD (?
12. What are the three primary measures used in macroeconomics to assess the performance of an economy? 1) 2) work and actively seeking work. The opportunity cost of ( of goods and services that could have been produced if the unemployed workers would have worked. ) provides an overall indicator of output or production in the economy _) is the state a person is in if he or she cannot get a job despite willing to ) is the production _) tracks the overall increase in the level of prices in the economy. Each 3) ( measure is important for tracking the short-run and long-run health of the economy and for creating macroeconomic models to address important policy questions.

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