Please answers questions ABC! Concise yet accurate answers are greatly appreciated. A country is currently in a recession. (a. Illustrate this economy on a fully-labeled aggregate demand-aggregate supply model. Include aggregate demand, short-run aggregate supply, and long-run aggregate supply.i. Label the short-run equilibrium price level PLE and the short-run equilibrium output YE.ii. Label the full-employment level of output YF.b. If the government and central bank do not intervene, how would this economy adjust in the long run? Explain.c. Illustrate the process of part (b) on your graph from part (a).d. The government decides to use fiscal policy to correct the economic situation in part (a). Assume the difference between the short-run and long-run equilibrium output is worth $36billion, and the marginal propensity to consume is 0.75. Calculate one specific and effective fiscal policy action the government could take.e. What would be the short-run impact of the government's action on the economy's real output?f. What would be the short-run impact of the government's action on the potential output of the economy?g. Will the long-run equilibrium price level if the government intervenes be less than, equal to, or greater than the long-run equilibrium price level without intervention?h. Show the impact of the government intervention from part (d) on the equilibrium real interest rate on a fully labeled loanable funds market graph.i. Will the long-run aggregate supply curve move a result of the change from part (h)? Explain.

Recession refers to the situation where economic activities slow down and output growth is less than…

A country is currently in a recession. ( a. Illustrate this economy on a fully-labeled aggregate demand-aggregate supply model. Include aggregate demand, short-run aggregate supply, and long-run aggregate supply. i. Label the short-run equilibrium price level PLE and the short-run equilibrium output YE- ii. Label the full-employment level of output YF. b. If the government and central bank do not intervene, how would this economy adjust in the long run? Explain. c. Illustrate the process of part (b) on your graph from part (a).

A country is currently in a recession. ( a. Illustrate this economy on a fully-labeled aggregate demand-aggregate supply model. Include aggregate demand, short-run aggregate supply, and long-run aggregate supply. i. Label the short-run equilibrium price level PLE and the short-run equilibrium output YE- ii. Label the full-employment level of output YF. b. If the government and central bank do not intervene, how would this economy adjust in the long run? Explain. c. Illustrate the process of part (b) on your graph from part (a).

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 3CQQ

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Please answer questions GHI! Concise yet accurate answers are appreciated. Thanks!
11. Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the proc- ess by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Illustrate with diagrams. In each case, what are the short-run and long-run effects on the aggregate price level and aggregate output? a. There is a decrease in households' wealth due to a decline in the stock market. b. The government lowers taxes, leaving households with more disposable income, with no correspond- ing reduction in government purchases.
16. Why is the aggregate supply curve completely vertical in the long run? A. Short-run business cycles do not affect short-run output. B. Aggregate supply is impossible to illustrate in the long run. C. A country’s total output will always be constant. D. A country’s total output is not affected by price in the long run.
B-D please thank you! If yo can't do B just c and d then, please
A(I) and (ii) pls!
Assume an economy operates in the intermediate range of its aggregate supplycurve. For each of the following changes in conditions, state the direction of theeffect on: aggregate demand, aggregate supply, price level, real GDP.(a) A decrease in government expenditure in infrastructure(b) A severe recession occurs in a country which has been a major importer of thenation’s exports.(c) The federal government increases business taxes with diagram
Typed plzzz Asap.....
2. Suppose that the economy is in a long-run equilibrium. a. Use a diagram to illustrate the state of the economy. Be sure to show aggregate demand, short-run aggregate supply, and long-run aggregate supply. b. Now suppose that a stock market crash causes aggregate demand to fall. Use your diagram to show what happens to output and the price level in the short run. What happens to the unemployment rate? c. Use the sticky-wage theory of aggregate supply to explain what will happen to output and the price level in the long run (assuming there is no change in policy). What role does the expected price level play in this adjustment? Be sure to illustrate your analysis in a graph.
1) What effects might each of the following have on aggregate demand/aggregate supply? In each case use a diagram to illustrate the effect, explain why shifts occurred, and state the impact of each event on the price levels, the unemployment rate, and real GDP. a. Congress passes into law a $1.5 billion cut in personal income taxes. b. Significant technological advances in the renewable energy sector decrease the price of all electricity by 50% c. Increases in consumer confidence lead to a positive demand shock.
Assume an economy operates in the intermediate range of its aggregate supplycurve. For each of the following changes in conditions, state the direction of theeffect on:1. aggregate demand, 2. aggregate supply, 3. price level, and 4. real GDP. (a) An increase in government expenditure in infrastructureClick or tap here to enter text.(b) A severe recession occurs in a country, which has been a major importer of thenation’s exports.Click or tap here to enter text.(c) The federal government increases business taxesClick or tap here to enter text.(d) The Central Bank increases the cash interest rate
Starting with a short run and long run equilibrium, assume a war breaks out, then," a.government spending increases b.household consumption increases c.long run aggregate supply shifts rightward d.short run aggregate supply shifts rightward.
Assume the economy of Chile is in a long-run equilibrium with full employment. In the short run,nominal wages are fixed.1. Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply,and aggregate demand. Show each of the following.a. Equilibrium output, labeled Y1b. Equilibrium price level, labeled PL1 2. Assume that there is an increase in exports from Chile. On your graph in question 1,show the effect of higher exports on the equilibrium in the short run, labeling the newequilibrium output and price level Y2 and PL2, respectively.3. Based on your answer in part (b), what is the impact of higher exports on real wages inthe short run? Explain.4. As a result of the increase in exports, export-oriented industries in Chile increaseexpenditures on new container ships and equipment.a. What component of aggregate demand will change?b. What is the impact on the long-run aggregate supply? Explain.