Assume that the /S-MP model on the right shows an economy that was in long-run macroeconomic equilibrium. Then, there was a significant positive demand shock. 1.) Using the 3-point curved line drawing tool, show the effect of the positive demand shock. Properly label your curve. 2.) Using the line drawing tool, show how the Fed might respond to restore long-run equilibrium. Properly label your curve. Carefully follow the instructions above, and only draw the required objects. Real interest rate Y=YP 0 MP₁ IS₁ Output gap Q Q

Assume that the /S-MP model on the right shows an economy that was in long-run macroeconomic equilibrium. Then, there was a significant positive demand shock. 1.) Using the 3-point curved line drawing tool, show the effect of the positive demand shock. Properly label your curve. 2.) Using the line drawing tool, show how the Fed might respond to restore long-run equilibrium. Properly label your curve. Carefully follow the instructions above, and only draw the required objects. Real interest rate Y=YP 0 MP₁ IS₁ Output gap Q Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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Compute the deferred tax expense and the balance of the deferred tax account for each year.

Prepare all journal entries required to record Oliver’s income tax provision for all 3 years.

Assume that the IS-MP model on the right shows an economy that was in long-run
macroeconomic equilibrium. Then, there was a significant positive demand shock.
1.) Using the 3-point curved line drawing tool, show the effect of the positive
demand shock. Properly label your curve.
2.) Using the line drawing tool, show how the Fed might respond to restore
long-run equilibrium. Properly label your curve.
Carefully follow the instructions above, and only draw the required objects.
Click the graph, choose a tool in the palette and follow the instructions to create your graph.
part
remaining
Clear All
Real interest rate
Y=yP
0
MP₁
IS₁
Output gap
Final Check
◄
?
▶

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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