a)- Using a set of WS/PS curves, and only in labor market, in step by step way, explain the impacts. b)- Using the aggregate supply and demand (AS/AD), and IS/LM curves, show the short and medium run equilibrium points. [No explanation, only neat and well-marked graphs are acceptable]

Q: b. An exogenous increase in the price of oil. Price Level (Y) 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 LRAS E…

A: The total quantity of all goods (and services) that the economy demands at various price levels is…

Q: Consider if in a given economy, the parliament approves an increase in minimum wage.   Starting from…

A: The lowest hourly rate that businesses are obligated by law to pay their employees is the minimum…

Q: Suppose the economy is in long-run equilibrium. (Note: This is from Chapter 20, which we will cover…

A: The equilibrium price level and output in a an economy is determined by the aggregate demand and…

Q: 2. Consider the IS-LM model derived in class. Suppose the economy of Economica is initially at the…

A: Created and developed by economists John Hicks and Alvin Hansen respectively, the ISLM model shows…

Q: Shown on the right is an aggregate demand-aggregate supply graph of an economy initially in a…

A: Macroeconomic monitoring will remain crucial since it dictates the eventual trajectory of the…

Q: Based on the given figure, the economy is initially in long-run equilibrium at point A. If there is…

A: Potential output, also referred to as potential GDP or the natural level of output, represents the…

Q: I Graphical 1. Economic analysis: Please mark the original AD as AD, and AS as AS. Show (wherever…

A: *Hi there , as per our guidelines we are going to solve  1 questions at once . Kindly repost the…

Q: Use the graph to answer the question that follows. Price LRAS SRAS Level H AD₂ AD₁ 0 Output Assume…

A: Ans. In the given, there is a long- adjustments in the equilibrium level (i.e. output at the full…

Q: Label the aggregate demand-aggregate supply model in long-run equilibrium.

A: The short run refers to a period when the wages and few other prices are sticky. On the other hand…

Q: Suppose the economy is initially in a long-run equilibrium. Starting from this position, assume that…

A: The aggregate demand-aggregate supply (AD-AS) model is a way to depict how national income is…

Q: Decide if the following events are Micro, shifting supply or demand, or Macro, shifting AD or AS.…

A: The branch of economics which studies the behaviour of individuals is called microeconomics.…

Q: 1. Aggregate Demand curves slope down. Explain in a sentence what that means (what happens when…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following explains why the long-run aggregate supply curve corresponds to the…

A: PPC demonstrates different amount of two commodities that a nation can produce with its available…

Q: Using a set of WS/PS curves, and only in labor market, in step by step way, explain the impacts.…

A: ***As required in the given question, the solution part contains only the graphs of the…

Q: How would an increase in productivity as a result ofa technological change affect the short-run…

A: Technological change will leads to change  in short run aggregate supply.

Q: Consider a baseline short run equilibrium where output is 16 trillion dollars, and the price level…

A: we know that equilibrium level is achieved  where aggregate demand and aggregate supply are equal…

Q: If there is a oil price shock, assuming that it is a temporary phenomenon, where eventually price…

A: 1 When there is a price oil shock temporarily, it would lead to the demand getting affected and due…

Q: run aggregate supply to demonstrate a negative supply shock. Aggregate price level and/or the…

A: A situation when the real output declines and the prices in the economy gets increase at the same…

Q: 1. Assume a nco-classical aggregate supply model with both long run and short run aggregate supply…

A: Short-run alludes to the time-frame in which the makers need more opportunity to change every one of…

Q: Price Levels, P AS Curve D A P* В C PB AD Curve E AD' YB Yn Output, Y Figure 3.

A: The medium-run equilibrium refers to that at which the natural level of output gets produced and the…

Q: Russia is a major exporter of oil, wheat, and palladium. The war in Ukraine lead to a negative…

A: Aggregate demand refers to the total demand for commodities and services made by all the economic…

Q: Figure 11.2 shows the relationship between the price level and real GDP. Suppose the economy is…

A: The total supply of goods and services produced in an economy in an aspect time period is called…

Q: QUESTION 8 In the model: T, - n + a(v, -v,)- YAe, + e !! What is the expected short-run effect of a…

A: A demand shock occurs when the demand for a product or service changes dramatically and…

Q: no more explanation . please as soon as possible  How would each of the following factors shift the…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Consider if in a given economy, the parliament approves an increase in minimum wage.   Starting from…

A: The lowest hourly rate that businesses are obligated by law to pay their employees is the minimum…

Q: Exhibit: The Aggregate Demand/Aggregate Supply Model 1 Which of the following statements is…

A: The economy failing to produce the desired quantity of a specific amount of resources is termed as…

Q: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the…

A: (Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: B LRAS SRAS₁ SRASO SRAS₂ D E AD 33. Y Y In this graph, assume that the economy starts at point A and…

A: The supply shock is an unexpected event that changes the overall supply of products. It leads to an…

Q: Macroeconomics is the study of aggregate behavior in a particular national economy. Macroeconomists…

A: The three macroeconomic variables - growth, employment, or inflation are the most important and are…

Q: Do you consider the impact of the COVID 19 situation on the economy to be a demand shock or a supply…

A: Demand and supply shock are the shocks that increase and decrease the demand and supply in the…

Q: Please write on the space provided what happens to each variable -- indicate whether each variable…

A: Output refers to the total product that an economy produces within a period in a country. It is also…

Q: Using the three-point curved drawing tool, draw a curve to show how an increase in productivity as a…

A: The aggregate supply represents the total supply of all goods and services produced in an economy in…

Q: Q2) Aggregate demand and supply a) Explain economic fluctuations in short and long run. b) What is…

A: The curve that depicts various quantities of goods being demanded by individuals by various…

Q: Consider if in a given economy, the parliament approves an increase in minimum wage.   Starting from…

A: ***As mentioned in the given question, the solution part contains only the graphs of the…

Q: 1.The economy of Country X is in equilibrium at full employment. (a) Draw a correctly labeled graph…

A: Aggregate demand curve is the downward sloping curve.  Aggregate supply curve is upward sloping…

Q: Consider a closed economy that begins with her long run equilibrium. Recently, households become…

A: The aggregate demand-aggregate supply (AD-AS) model shows how to calculate national income and how…

Q: the parliament approves an increase in minimum wage.   Starting from the medium run equilibrium,…

A: ***As required in the given question, the solution part contains only the graphs of the…

Q: Hello, I would like help on those assignments. Thank you

A: As per our Honor code, we can solve only 1st question. If you want the answer for rest of the…

Q: The figure to the right shows an economy in a short-run equilibrium at point A Using the three-point…

A: When the general price level in the economy rises due to an increase in the cost of production of…

Q: B. Can policymakers use monetary policy (and/or fiscal policy) to accommodate this shock? Describe…

A: The covid-19 is a pandemic that has been spread throughout the world taking the lives of almost a…