Economics Learning Center Online Classes - Final Mock Exam (1) Price Level (Index Value) Real Domestic Output Real Domestic Output Demanded (in Billions) Supplied (in Billions) $3,000 350 $9,000 4,000 300 8,000 5,000 250 7,000 6,000 200 6,000 7,000 150 5,000 8,000 100 4,000 16) The accompanying table shows the aggregate demand and aggregate supply schedules for a hypothetical economy. 21 A) The equilibrium price and output levels will be. B) At the price level of 150, What will happen in the economy? Why? ClAt the price level of 350 Wha 2nd Semester 2021/2022

Economics Learning Center Online Classes - Final Mock Exam (1) Price Level (Index Value) Real Domestic Output Real Domestic Output Demanded (in Billions) Supplied (in Billions) $3,000 350 $9,000 4,000 300 8,000 5,000 250 7,000 6,000 200 6,000 7,000 150 5,000 8,000 100 4,000 16) The accompanying table shows the aggregate demand and aggregate supply schedules for a hypothetical economy. 21 A) The equilibrium price and output levels will be. B) At the price level of 150, What will happen in the economy? Why? ClAt the price level of 350 Wha 2nd Semester 2021/2022

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 16SCQ: Both the United States and global economies are booming. Will U.S. imports and/or exports increase?

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- U.S. aggregate demand and long-run aggregate supply decreased during the Great Recession. This caused real gross domestic product (GDP) to and the price level to decrease; decrease increase; increase decrease; remain unchanged decrease; increase remain unchanged; increase
13. The following table shows the initial aggregate supply and demand data for a country. Price Aggregate Aggregate Level Demand Supply 200 10,000 4,000 300 9,000 6,000 400 8,000 8,000 500 7,000 9,000 600 6,000 9,500 700 5,000 9,800 800 4,000 9,900 If input prices rise and AS shifts to the left by 2,000 units at each price level, what output level will equal the new equilibrium price? (A) 6000 (B) 2000 (C) 8000 (D) 7000
4) Draw a graph that plots Short-run Aggregate Supply, Long.Run Aggregate Supply, and Aggregate Demand. Indicate the equilibrium point on the graph. Then, explain the shifts of the curves and the movement of equilibrium under the following events. 1. Government increases the income taxes 2. The war in Libya increases the price of oil globally
2a) You have the following information about aggregate demand and aggregate supply. Complete the table. Aggregate supply is Y=2+PL2 Amounts are in millions of dollars Price level $2 C G M AD AS $10 $5 $8 $7 $2 28 $3 $8 $4 $6 $6 $3 21 $4 $6 $4 $8 $4 $4 18 16 $5 $4 $3 $7 $3 $5 12 21 $6 $2 $3 $4 $3 | S6 |し 38 出4 b) Macroeconomic equilibrium occurs at a price-level of and an output level of h units
4) Draw a graph that plots Short-run Aggregate Supply, Long.Run Aggregate Supply, and Aggregate Demand. Indicate the equilibrium point on the graph. Then, explain the shifts of the curves and the movement of equilibrium under the following events. 1. Government increases the income taxes 2. The war in Libya increases the price of oil globally 3. The lack of raw materials causing shortage of electronic chips used in many consumer electronics 4. New economic policy that attracts more investment Draw a new graph for each of these policy analysis. Show the movements of curves clearly. Explain the short run and the long run impact of each policy with a few sentences.
This question explores how a wage subsidy like the EITC impacts the labor market. Suppose that labor demand is described by w = 17 – 2L and labor supply is described by Ls = w - 5. Find the equilibrium wage. The exact size of the EITC varies from state and state and depends on how many children you have but on average it $3/hour extra on top of the market wage. You can model this like a tax so the wage in the supply curve is now $3 more than the wage in the demand curve. pays about In equilibrium, how much do employees get paid per hour (in total)?
Activity 2 Statistics Reading The most major economic problem of our country today is the reduction of the GDP caused by the pandemic together with the other forces of the market and economic problem as seen in the data below. Give your analysis and the ways you can think of to improve our economy? 10 6.6 6.5 6.2 -0.7 -5 -1 -11.5 -1 -16.9 -2 Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020 SOURCE: TRADINOECONOMCS.COM NATIONAL STATISTICS OFFICE OF PHILIPPINES 1.What can you interpret about the GDP of the Philippines based on the Chart? 2. What are the reasons of the decline in the GDP of our Country? List some concrete evidences based on certain article or news. 3. What do you think would happen in the GDP of the Philippines in the year 2022? List some of your views based on economic principles. ||
Note: Line segments will automatically connect the points. PRICE LEVEL (Billions of dollars) 200 160 120 0 80 160 240 REAL GDP (Index numbers) The equilibrium price level is 320 400 Initial AD The change in government spending the multiplier effect. SRAS New AD ✓, and the equilibrium level of real output is Suppose that the government spending increases by $16 billion and the expenditure multiplier in this economy is 5. On the previous graph, use the purple points (diamond symbols) to illustrate the effect of the increase in government spending on the aggregate demand (New AD) curve. the equilibrium level of real output by . The price level increase
(Figure: Kenyan Labor Market) The labor market begins in equilibrium. Then, the government of Kenya implements a minimum wage of 15,000 Kenyan shillings per month. After the implementation of the minimum wage, the number of workers hired Wage (Kenyan shillings per month) 20,000 15,000 12,000 10,000 20,000 36,000 30,000 45,000 Supply Demand ! 60,000 Quantity of labor people.
Question 1 "Australia's booming housing demand could be impacted by China's move to restrict steel production, with rising prices impacting the essential material used to build houses as well as threats to supply." Adapted from News.com.au, 16 August 2021. (a) Using demand and supply analysis, predict the impact of the event on the housing market in Australia. Support your answer with a diagram. (b) Explain why this process does not cause market disequilibrium.
Amount of Real GDP Demanded, Billions $100 $ 200 $300 $ 400 $ 500 Price level 350 a. Use the data above to graph the aggregate demand and aggregate supply curves. Instructions: (1) Use the tools provided AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 5 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided Eq' to indicate the equilibrium price level and the equilibrium level of real output. 300 250 200 150 100 50 Price Level (Price Index) 300 250 200 150 100 Amount of Real GDP Supplied, Billions $ 450 400 300 200 100 100 200 300 400 500 600 700 Real domestic output (billions of dollars) bition Tools AD Eq AS Instructions: Enter your answers as a whole number a. What are the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Equilibrium price level= Equilibrium level of real output $[ billion is the equilibrium real output also…