ADoADo102030400 10203040real GDP = Qreal GDP = QFigure CFigure DP level60P level60ASoLRASLRAS5050ASo40-40+303020 -20AD110 -10LADOADo-AD1Hㅇ10304050102030*40real GDP = Qreal GDP = Q%3D33. Assuming the original position of the AS curve is ASo, the problem in the economy depicted in Figure B is:an inflationary gap of 10an inflationary gap of 5a recessionary gap of 550505020

In an economy, when the short-run equilibrium is not equal to the long-run equilibrium, that is the…

Figure C Figure D P level 60 P level 60 ASo LRAS LRAS 50 50 ASo 40 40 30 30 20 20 AD1 10 10 ADo AD1 ADo 10 20 30 40 50 10 20 30* 40 50 real GDP = Q real GDP = Q 33. Assuming the original position of the AS curve is ASo, the problem in the economy depicted in Figure B is: an inflationary gap of 10 O an inflationary gap of 5 a recessionary gap of 5

Figure C Figure D P level 60 P level 60 ASo LRAS LRAS 50 50 ASo 40 40 30 30 20 20 AD1 10 10 ADo AD1 ADo 10 20 30 40 50 10 20 30* 40 50 real GDP = Q real GDP = Q 33. Assuming the original position of the AS curve is ASo, the problem in the economy depicted in Figure B is: an inflationary gap of 10 O an inflationary gap of 5 a recessionary gap of 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider an AS AD diagram. What would happen in the model if Energy prices increased? Group of answer choices a. AD shifts right and prices increase while real GDP increases b. AS shifts left and prices increase while real GDP decreases c. AS shifts right and prices decrease while real GDP increases d. AD shifts left and prices decreases while real GDP decreases
Use the initial settings (or any other non-zero value) for the Change in Autonomous Spending and MPC. Click the "Spending Rounds" button at the top of the Settings window. Which of the following describes how the Change in Spending value in each row is related to the Disposable Income value in the same row? O In each row, Change in Spending is Disposable Income minus MPC*(Change in Autonomous Spending). Change in Spending in each row is MPC x Disposable Income for that row. O Change in Spending is always half of Disposable Income. O Change in Spending is Disposable Income times the spending multiplier.
D Question 8 When the government lowers income taxes, consumption is O stimulated; rightward shift of O stimulated; movement down along O reduced; leftward shift of O reduced; movement up along Question 9 An increase in the price of a nonlabor input such as oil will cause a movement up the SRAS curve. a leftward shift in the SRAS curve. a rightward shift in the SRAS curve. no change regarding the SRAS curve. , causing a the AD curve.
Use the following graph to answer the next question. Price Level 0 AS3 AS₁ AS₂ Real Domestic Output, GDP Which of the following factors will shift AS1 to AS2? O An increase in real interest rates O A decrease in business subsidies O An increase in input prices O A decrease in business taxes.
Select all that are correct
COURSE: MACROECONOMICS - IS-LM and/or MUNDELL FLEMING MODELS Refer to 2 different models (and/or conditions) under which an increase in the amount of money circulating in the economy has a NULL impact on GDP. Then, refer to 2 different models (and/or conditions) under which an increase in the amount of money circulating in the economy has a MAXIMUM impact on GDP. EXPLAIN very briefly the mechanism by which each model generates that NULL or MAXIMUM impact on GDP. Hint: 2 conditions under increase of M (money) and how impact null (zero) and maximum on GDP. Example, considering both fiscal or monetary policies or liquidity trap model. Please graph and explain on detail both cases.
Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point W. The price level is Po. Now, suppose there is an exogenous fall in the price level to P2. Which of the following statements describes the likely macroeconomic effects? O A. The AE curve shifts to AE₁, a new equilibrium is established at point V, and the AD curve shifts from AD to AD¹, and equilibrium moves from point B to point D. OB. The AE curve shifts to AE2, a new equilibrium is established at point U, and the AD curve shifts from AD to AD¹, and equilibrium from point B to point D. Ⓒ C. The AE curve shifts to AE2, a new equilibrium is established at point U, and the economy moves from point B to point C along AD. O D. The AE curve shifts to AE₁, new equilibrium is established at point V, and the economy moves from point B to point C along AD⁰. Desired Aggregate Expenditure Price Level 759² Y₁ W Yo Y₂ Real GDP AE=Y AE₂ Real GDP AEo AE₁ Q ✔ Q
Answer b is not correct I am again says answer b is not correct
K Consider the following diagram, in which the current short-run equilibrium is at point A. a. At point A, the economy has an inflationary gap b. If the marginal propensity to consume equals 0.5, to eliminate the gap, the government should decrease spending by $trillion. (Round your answer to two decimal places.) Price Level 122 118 114 LRAS SRAS A 22 22.8 23.6 Real GDP per Year ($ trillion) AD