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- Show the impact of the increase in the price level by moving the point along the curve or shifting the curve. (?) PRICE LEVEL 180 150 120 90 60 30 0 0 20 Aggregate Demand 40 60 80 OUTPUT (Billions of dollars) 100 120 The change in the interest rate found in the previous task will lead to a in the quantity of output demanded in the economy. Aggregate Demand -O in residential and business spending, which will causeIf households decide to save a larger portion of their income, what effect would this have on the output, employment, and price level in the short run? What about the long run?Suppose the people of Canada has reduced their spending on goods and services from the United States. What will be the effect on real GDP and the price level in the short run? In the long run? Show your results graphically.
- Suppose that because of globally adverse meteorological conditions, there are serious concerns of climbing prices in an extensive group of commodities. As a result, people now expect an acute increase in the level of input prices. The figure shows aggregate demand (AD), short‑run aggregate supply (SRAS), and long‑run aggregate supply (LRAS). Move one or more of these curves to describe the short‑run effect this would have in the economy and answer the two questions. Adjust graph in picture. In the short run, price level a. increases. b. decreases. c. The change is indeterminate. In the short run, real GDP (or aggregate output) a. The change is indeterminate. b. decreases. c. increases.Am I Right. Hand written solutions are strictly prohibited.The full employment level of real GDP is $6 billion for the recently formed island nation of Turtleopolis. Use the line segment to show long‑run aggregate supply on the graph. Look at the image to adjust
- How would you draw an ADAS diagram showing an event that caused the aggregate demand to shift?( my example is how the federal government increased spending on national defense) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Real-Time Data Analysis Exercise* "Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Using data from the St. Louis Federal Reserve, analyze the effects of a positive supply shock. The U.S. economy experienced a supply shock with the spread of information communication technology and the Internet after 1995. Click the following link to view the Personal Consumption Expenditure price index data from FRED. i P1 Using the Series ID PCEPI, plot the the inflation rate from 1982 to 2007 as the percentage change in the Personal Consumption Expenditure price index from the same month in the previous year. Price level AS Q C The inflation rate for April of 2024 (shown as 2024-04-01 in FRED) was (Round your answer to two decimal places.) %. AD Y₁ Output The inflation rate for October of 1984 (shown as 1984-10-01 in FRED) was %. (Round your answer to two decimal places.)Over the past two years there has been a depletion of groundwater in thenation due to severe drought in the country. 1. Which of the two graphs above is correct? Explain why. 2. What happened to real GDP on the selected graph? Why? 3. What happened to the price level on the selected graph? Why? 4. What happened to the aggregate demand and the aggregate supply? Why?
- During the last two years there has been a depletion of groundwater in the nation because of a severe drought in the country. 1. Which of the two graphs above is correct? Explain why. 2. What happened to real GDP in the selected graph? Why? 3. What happened to the price level in the selected graph? Why? 4. What happened to aggregate demand and aggregate supply Why?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.Determinants of aggregate demand The following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right from AD1AD1 to AD2AD2, causing the quantity of output demanded to rise at all price levels. For example, at a price level of 140, output is now $400 billion, where previously it was $300 billion.
