Graph A Use graph A on the right to determine what happens to the equilibrium values of the price level and aggregate output when there is an increase in G with no change in the money supply. 1.) Using either the 3-point curved line drawing tool to shift the AS curve or using the line drawing tool to shift the AD curve, illustrate the impact of the increase in G. Properly label your curve. 2.) Using the point drawing tool, identify the economy's new equilibrium point. Carefully follow the instructions above and only draw the required objects.A According to the graph, the economy's equilibrium price level will increase and its equilibrium output level will increase Use graph B on the right to determine what happens to the equilibrium values of the price level and aggregate output when there is an increase in wage rates with a decrease in government spending. 1.) Using the 3-point curved line drawing tool, illustrate the impact of the increase in wage rates. Label your curve 'AS, AD 2.) Using the line drawing tool, illustrate the impact of the decrease in government spending. Label your curve 'AD,. Yo 3.) Using the point drawing tool, identify the economy's new equilibrium point. Aggregate output (income). Y Carefully follow the instructions above and only draw the required objects.R Graph B According to the graph, the economy's equilibrium price level will v and its equilibrium output level will AS AD. AD Yo Aggregate output (income), Y Price level, P
Graph A Use graph A on the right to determine what happens to the equilibrium values of the price level and aggregate output when there is an increase in G with no change in the money supply. 1.) Using either the 3-point curved line drawing tool to shift the AS curve or using the line drawing tool to shift the AD curve, illustrate the impact of the increase in G. Properly label your curve. 2.) Using the point drawing tool, identify the economy's new equilibrium point. Carefully follow the instructions above and only draw the required objects.A According to the graph, the economy's equilibrium price level will increase and its equilibrium output level will increase Use graph B on the right to determine what happens to the equilibrium values of the price level and aggregate output when there is an increase in wage rates with a decrease in government spending. 1.) Using the 3-point curved line drawing tool, illustrate the impact of the increase in wage rates. Label your curve 'AS, AD 2.) Using the line drawing tool, illustrate the impact of the decrease in government spending. Label your curve 'AD,. Yo 3.) Using the point drawing tool, identify the economy's new equilibrium point. Aggregate output (income). Y Carefully follow the instructions above and only draw the required objects.R Graph B According to the graph, the economy's equilibrium price level will v and its equilibrium output level will AS AD. AD Yo Aggregate output (income), Y Price level, P
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Use graph A on the right to determine what happens to the equilibrium values of the price level and aggregate output when there is an
increase in G with no change in the money supply.
Graph A
1.) Using either the 3-point curved line drawing tool to shift the AS curve or using the line drawing tool to shift the AD curve, illustrate
the impact of the increase in G. Properly label your curve.
AS
2.) Using the point drawing tool, identify the economy's new equilibrium point.
Carefully follow the instructions above and only draw the required objects.
According to the graph, the economy's equilibrium price level will increase
and its equilibrium output level will increase
Use graph B on the right to determine what happens to the equilibrium values of the price level and aggregate output when there is an
increase in wage rates with a decrease in government spending.
1.) Using the 3-point curved line drawing tool, illustrate the impact of the increase in wage rates. Label your curve 'AS,.
AD
2.) Using the line drawing tool, illustrate the impact of the decrease in government spending. Label your curve 'AD;'.
Yo
3.) Using the point drawing tool, identify the economy's new equilibrium point.
Aggregate output (income), Y
Carefully follow the instructions above and only draw the required objects.
Graph B
According to the graph, the economy's equilibrium price level will
V and its equilibrium output level will
AS2
AS
AD
Yo
Aggregate output (income). Y
Price level, P
Price level, F
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