The figure to the right shows an economy in an initial long-run equilibrium atpoint A.LRAS,a. Using the line drawing tool, show how, if at all, the equilibrium real GDP andthe long-run equilibrium price level are affected bya decrease in the value of thehome currency in terms of the currencies of other nations.Properly label this line.Carefully follow the instructions above, and only draw the required objects.P1AADb. According to your graph, the equilibrium price level rises while theequilibrium real GDPAD,RGDP1Real GDP (S trillions per year)Price Level

Demand refers the total amount of goods and services that are willing and able to buy at the…

Answered: The figure to the right shows an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The economy starts at C point. If the government successfully lower its currency's exchange rate (one-time action, no further manipulation), then the economy will most likely to OA. moves to B in both in the short run and in the long run. O B. move to B in the short run and A in the long run. OC. moves to D in the short run but move back to C in the long run. O D. moves to D in bothin the short and long run. O E. stays in the C in the short run, but moves to B in the long run.
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I need all answers plz typing clear urjent no chatgpt
China has a current trade surplus and considering only the direct effect on income, if the Chinese National bank used expansionary monetary policy, the policy would tend to: A. decrease the exchange rate and increase the trade surplus.B. increase the exchange rate and increase the trade surplus.C. decrease the exchange rate and decrease the trade surplus.D. increase the exchange rate and decrease the trade surplus. The recent increase in the Fed Funds rate at the direction of the Federal Reserve tends to: A. lower U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar.B. lower U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar.C. raise U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar.D. raise U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar. one Of the four choices below, which causes a shift in the Supply of dollars to…
Explain and show graphically how monetary and fiscal policies can be used in a closed economy IS-LM economy that is in a recession.
Sub : EconomicsPls answer very fast.I ll upvote. Thank You a small open economy is described by the following equations: C = 50 + .75(Y-T) I = 200 - 20r NX = 200 -50e M/P = Y -40r G = 200 T = 200 M = 3000 P = 3 r* = 5 a. Derive and graph the IS* and LM* curves. b. Calculate the equilibrium exchange rate, level of income, and net exports c. Assume a floating exchange rate. Calculate what happens to the exchange rate, the level of income, net exports and the money supply if the government increases spending by 50. Use graph to illustrate what you find. d. Now assume fixed exchange rate. Calculate what happens to the exchange rate, the level of income, net exports and the money supply if the government increases spending by 50. Use graph to illustrate what you find.
Consider a non-oil-exporting economy in its long-run equilibrium. Which of the following explains the ultimate long-run effect of a decrease in international oil price on the GDP of this economy? The GDP will ultimately increase. O The GDP will ultimately decrease. The GDP will ultimately be at potential output, in the absence of downward- sticky wages. The effect on GDP will be ambiguous.
Please help me with this questions. Thank you 1. Using the IS–LM–FX model, illustrate how an increase in the home country’sgovernment spending affects the home country. Compare the outcome when the homecountry has a fixed exchange rate with the outcome when the home currency floats. Foreach case, state the effect of the increase in the home country’s government spending(increase, decrease, no change, or ambiguous) on the following variables: Y, i, E, C, I,TB. 2. During the 1980s, the United States experienced “twin deficits” in the currentaccount and government budget. Since 1998 the U.S. current account deficit has grownsteadily along with rising government budget deficits. Do government budget deficitslead to current account deficits? Identify other possible sources of the current accountdeficits. Do current account deficits necessarily indicate problems in the economy? 3. Suppose the Japanese government is considering two policies. One policy wouldinvolve increasing government…

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