According to the graphs, a decrease in the aggregate price level would cause a shift from: Planned aggregate spending D B 45-degree line AE AE Y₁ Yz Real GDP Aggregate price level F 9- P2 a. A to B b. B to C OCC to B d. A to C G Y₁ Y₂ AD Real GDP

Suppose Mexico, one of our largest trading partners and purchaser of a large quantity of our exports, goes into a recession. Use the AD/AS model to determine the likely impact on our equilibrium GDP and price level.

Briefly explain the reason for the near-horizontal shape of the SRAS curve on its far left.

Suppose concerns about the size of the federal budget deficit lead the U.S. Congress to cut all funding for research and development for ten years. Assuming this has an impact on technology growth, what does the AD/AS model predict would be the likely effect on equilibrium GDP and the price level?

How is recession illustrated in an AD/AS model?

Name some factors that could cause the SRAS curve to shift, and say whether they would shift SRAS to the right or to the left.

The short run aggregate supply curve was constructed assuming that as the price of outputs increases, the puce of inputs stays the same. How would an increase in the prices of important inputs, like energy, affect aggregate supply?

What is the role of daynamic in macroeconomic? What are the diffrence between static and daynamic?

A The old price level still remains unchanged. Which of the below graphs is the correct depiction of the change in the previous two questions? P P (b) (a) P AS AS1 ASASO P P YB YA (c) P Y P YC➡YD Y (d) P AD1 ADO ADO AD YF YE Y YG YH Y - B Which points (or what distance) demonstrate the disequilibrium between the expenditure and output on the graph you chose? C Now the markets suggest a new price level at which output will equal expenditure. Graph an AS/AD and in it show with an arrow how the real balances effect, the interest rate effect, and the foreign effect will adjust the price level to match expenditure to output. D Now on a separate graph show how the worker cost effect will drive firms to hire or fire workers so that their output matches the expenditure.

Please provide a summary of these key points