e. A war that raises government purchases. Graph Summary Instructions Tools Aggregate Demand Short Run Aggregate Supply Long Run Aggregate Supply Graph Summary Instructions Tools Aggregate Demand Short Run Aggregate Supply Long Run Aggregate Supply Inflation rate Inflation rate Short-Run Effects Output Y LRAS Long-Run Effects Output Y LRAS AD SRAS AD SRAS For each of the following, use an AD-AS diagram to show the short-run and long-run effects on output and inflation. Assume the economy starts in long-run equilibrium. Instructions: In all the diagrams below, use the directional arrow tool provided to shift the appropriate curve or curves to show the short-run changes on the left side and long-run changes (which must also include the short-run changes) on the right side. d. A sharp drop in oil prices (assume the change in oil prices is permanent and no policy actions are taken). Graph Summary Instructions Tools Aggregate Demand Short Run Aggregate Supply Long Run Aggregate Supply Graph Summary Instructions Tools Aggregate Demand Short Run Aggregate Supply Long Run Aggregate Supply Inflation rate Inflation rate Short-Run Effects LRAS Output Y Long-Run Effects LRAS Output Y AD SRAS AD SRAS

e. A war that raises government purchases. Graph Summary Instructions Tools Aggregate Demand Short Run Aggregate Supply Long Run Aggregate Supply Graph Summary Instructions Tools Aggregate Demand Short Run Aggregate Supply Long Run Aggregate Supply Inflation rate Inflation rate Short-Run Effects Output Y LRAS Long-Run Effects Output Y LRAS AD SRAS AD SRAS For each of the following, use an AD-AS diagram to show the short-run and long-run effects on output and inflation. Assume the economy starts in long-run equilibrium. Instructions: In all the diagrams below, use the directional arrow tool provided to shift the appropriate curve or curves to show the short-run changes on the left side and long-run changes (which must also include the short-run changes) on the right side. d. A sharp drop in oil prices (assume the change in oil prices is permanent and no policy actions are taken). Graph Summary Instructions Tools Aggregate Demand Short Run Aggregate Supply Long Run Aggregate Supply Graph Summary Instructions Tools Aggregate Demand Short Run Aggregate Supply Long Run Aggregate Supply Inflation rate Inflation rate Short-Run Effects LRAS Output Y Long-Run Effects LRAS Output Y AD SRAS AD SRAS

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 41P

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