Assuming the economy is operating below its potential output, what is the impact of an increase in net exports on real GDP ? Why is it difficult, if not impossible, for a country to boost its net exports by increasing its tariffs during a global recession?

Q: Discuss how the current concerns regarding the Coronavirus factor into the GDP dynamic.  What are…

A: The pandemic has led various governments to take drastic measures to contain its spread. One of the…

Q: Suppose that the AD-SRAS-LRAS diagram for the economy is starting in a long-run equilibrium. Now if…

A: The alternating of stages of growth and contraction in aggregate economic activity, as well as the…

Q: An increase in personal income taxes would lower net exports and shift the AD curve to right…

A: ***Since you've posted multiple independent McQs, according to our guidelines, only the first McQ is…

Q: Please use the AD-AS model to analyze the effects of monetary policy and fiscal policy on economic…

A: The actions by the monetary authorities/government to either expand or tighten the economy and its…

Q: Using the AD/AS model, explain how each of the following hypothetical Government policies would…

A: Aggregate demand refers to the situation when the economy as a whole is considered to want something…

Q: Using the AD/AS model, show how fear of a recession is expected to affect an economy experiencing…

A: A recession is a significant and prolonged decline in economic activity within a country or region.…

Q: Which of the four IS-LM models in the figure below represents the results of a fall in exogenous…

A: A drop in exogenous export expenditure would result in a decline in aggregate demand in the IS-LM…

Q: Consider the following open economy, which we shall call Gazzalestan. C=50+4/5 X YD. I=2000 G=1100…

A: C = 50 + 4/5Yd I = 2000 G = 1100 X = 150 M = 3/10Y T = 3/8Y

Q: Make a graph that shows where Indonesia currently is on the business cycle. Can you also include an…

A: The economies around the world work according to the changes in the changes in their consumption…

Q: In the AD/AS model, what prevents the economy from achieving equilibrium at potential output?

A: Equilibrium will occur at the point where the aggregate demand (AD) & the aggregate supply (AS)…

Q: Use AD/AS model to solve the following problems. You have to DRAW and explain AD/AS model. Hydraulic…

A: The AD/AS (Aggregate Demand/Aggregate Supply) model is a way to show how national income, output,…

Q: Russia’s invasion of Ukraine is causing energy prices to soar in the euro area (at an annual rate of…

A: The Russian invasion of Ukraine has led to a rise in the energy prices in euro area. The rise in the…

Q: In the IS-LM model, which market moves the fastest to restore general equilibrium?

A: The IS-LM model offers another perspective on how the economy's short-run real gross domestic…

Q: Suppose an open economy is described by the following equations:  C = C0 + MPC (Y-T) = 100 + 0.4…

A: The information given is as follows:- C = C0 + MPC (Y-T) = 100 + 0.4 (Y-T)     Also the given values…

Q: Change in the financial market of an economy will affect the global economy. Briefly discuss.

A: Financial market refers to the place where savers and investors interact with each other to exchange…

Q: Show the derivation of the foreign trade multiplier and calculate the foreign trade multiplier in an…

A: It is given that Consumption function of C = 60 + 0.4Y Import function of M = M0 + 0.2Y

Q: Following a tax cut by government, domestic investment will ________ and net exports will ________.…

A: A change in government tax collection affects the government budget.  A change in the government…

Q: A hypothetical economy is given by the following identities: C = 3000 I = 2000 G = 2500 T = 0.2Y…

A: The Keynesian equilibrium is one of the macroeconomic models which would result in the aggregate…

Q: Use the AE model to explain and show the impact of an autonomous fall in the value of goods exported…

A: The change in the export and import would affect the net export of country, so the aggregate demand…

Q: What caused stagflation? How did it affect the world economy in the 1970s?

A: It is an economic situation, where economic growth is slow and the inflation rate is high and having…

Q: Macroland implements a combination of expansionary fiscal and monetary policies. What will be the…

A: The policy of EF {expansionary fiscal} is used to boost the economy of the nation at the time of…

Q: Consider the following open economy: C = 40 + 0.85x YD I = 1500 G = 1600 X = 240 M = 0.12x Y TR = 10…

A: C = 40 + 0.85*YD Differentiate C w.r.t YD to get MPCD MPCD = dc / dYD => MPCD = 0.85…

Q: consider that there is a decrease in the investment demand. Analyze and graph its effects on:…

A: Due to decrease in investment demand,aggregate demand would decrease. Therefore exports and capital…

Q: Consider an open economy with a current population of 0.55 million people, and where the potential…

A: Goods market is in equilibrium when Aggregate demand and aggregate supply. This determines the…

Q: For oil exporting countries, the negative effect of oil boom on their economies is mainly due to…

A: It can be defined as the strategy in which the activities, investment, and production are spread in…

Q: Macroland is recognized as a high-income economy by the World Bank. The country of Macroland is now…

A: When the country of Macroland is in recession: Recession: Recession is an economic phase which…

Q: Explain why the multiplier in an open economy is different from the multiplier in a closed

A: *Answer:

Q: Is our US Economy in Equilibrium? What recent events might cause you to indicate that it is or not?

A: Answer: Equilibrium in an economy refers to the situation where Aggregate demand is equal to the…

Q: Consider the following hypothetical open economy. According to the expenditure approach, for this…

A: Given:S=0.3YI=0.2YNet capital outflow=$1 trillion

Q: Consider the relationship among exchange-rate changes, aggregate demand, and monetary policy. Assume…

A: Aggregate demand (AD) and aggregate supply (AS) are two fundamental concepts in macroeconomics that…

Q: Use the information in the table to answer the questions that follow. (Hint: Assume this is a closed…

A: The employment, output, consumption and investment are given as follows.Employment levelReal…

Q: Suppose after five years of sluggish growth, the economy of the European Union picks up speed.  What…

A: The GDP is the summation of the money value of all the final goods and services produced within the…

Q: Suppose that a vaccine manufacturing company owned entirely by U.S. citizens opens a new facility in…

A: a)Foreign direct investment. b)Canada GDP would increase and U.S GDP would be unaffected.

Q: What are the results of economic policies in Indonesia and what do they look like in the short-run…

A: With an annual gross domestic product (GDP) of USD940.9 billion, Indonesia has the largest economy…

Q: The AD/AS diagram illustrates GDP falls, often occurring below potential GDP. O expansions…

A: Real GDP refers to the value of all goods and services produced in the territory of a country…

Q: 6.* This question is concerned with the repercussion effects of a domestic expansion once we…

A: Domestic expansion signifies the growth or expansion of an economy through the business sector…

Q: a. Sketch an AD/AS graph for the U.S. in both long-run and short-run equilibrium. b. On the U.S.…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, I will be…

Q: Graphically show the likely short-run impact on US real GDP and aggregate price level using the…

A: Macroeconomic research provides a comprehensive forecast for the fiscal landscapes of entire…

Q: 5.1. Using system 5. A and equation 5. C, derive the IS curve (Hint: You would effectively derive a…

A: