Aggregate macroeconomic equilibriums Please graphically display a graph for each and all the scenarios. You may draw the graph using any method you like, but your graphs must be legible. 1. Draw a short-run AD–AS graph showing the effect of a severe drop in stock prices that decreases households’ and businesses’ wealth. Indicate the effect on the equilibrium aggregate price level and equilibrium aggregate output. 2. Draw a short-run AD–AS graph showing the effect of a significant decrease in the world supply of oil. Indicate the effect on the equilibrium aggregate price level and equilibrium aggregate output. 3. Draw an AD–AS graph showing a recessionary gap.4. Draw an AD–AS graph showing an inflationary gap. 5. Draw a graph illustrating short-run macroeconomic equilibrium. 6. Draw a graph illustrating long-run macroeconomic equilibrium. Aggregate macroeconomic equilibriumsPlease graphically display a graph for each and all the scenarios. You may draw the graph usingany method you like, but your graphs must be legible.1. Draw a short-run AD-AS graph showing the effect of a severe drop in stock pricesthat decreases households' and businesses' wealth. Indicate the effect on theequilibrium aggregate price level and equilibrium aggregate output.2.Draw a short-run AD-AS graph showing the effect of a significant decrease in theworld supply of oil. Indicate the effect on the equilibrium aggregate price level andequilibrium aggregate output.3.Draw an AD-AS graph showing a recessionary gap.4.Draw an AD-AS graph showing an inflationary gap.5.Draw a graph illustrating short-run macroeconomic equilibrium.6.Draw a graph illustrating long-run macroeconomic equilibrium.D

1. Impact of a Severe Drop in Stock PricesA sharp decline in stock prices typically reduces…

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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 1QR

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Aggregate macroeconomic equilibriums Please graphically display a graph for each and all the scenarios. You may draw the graph using any method you like, but your graphs must be legible. 1. Draw a short-run AD–AS graph showing the effect of a severe drop in stock prices that decreases households’ and businesses’ wealth. Indicate the effect on the equilibrium aggregate price level and equilibrium aggregate output. 2. Draw a short-run AD–AS graph showing the effect of a significant decrease in the world supply of oil. Indicate the effect on the equilibrium aggregate price level and equilibrium aggregate output. 3. Draw an AD–AS graph showing a recessionary gap. 4. Draw an AD–AS graph showing an inflationary gap. 5. Draw a graph illustrating short-run macroeconomic equilibrium. 6. Draw a graph illustrating long-run macroeconomic equilibrium.