JobKeeper was designed to keep people employed and ‘sustain’ the economy through the enforced lockdown. Using the static AD/AS model explain. Use the static AD-AS model to explain how the JobKeeper policy worked to sustain the economy (even though unemployment increased).

Q: CNBC on Jan 26, 2022 reports, “Federal Reserve points to interest rate hike coming in March".…

A:

Q: Which part of the AD/AS model is most applicable to Say's Law? O AS curve O AD curve O flat portion…

A: Say's Law refers as "supply creates its own demand." In other words, the act of producing goods and…

Q: Consider a standard AD-AS model.An increase in the inflation target is associated with a short-run…

A: The macroeconomic equilbrium in an economy is determined by the aggregate demand and aggregate…

Q: What is the Keynesian zone of the SRAS curve? How much is the price level likely to change in the…

A: ANS According to Keynes demand will create its own supply. If aggregate demand changes then would…

Q: How is long-term growth illustrated in an AD/AS model? Draw a graph of the AD/AS model and show the…

A: Macroeconomic research provides a comprehensive forecast for the fiscal and monetary landscapes of…

Q: What impact would a decrease in the size of the labor force have on GDP and the price level…

A: ANS If the labor force decreases then less number of labors will be available to works and thus the…

Q: Consider the AS/AD model. Moreover, suppose the economy is in Short-Run and Long-Run equilibrium.…

A: AS/AD model is a graphical model for understanding economic fluctuations. Its components consists of…

Q: Graphically derive and explain the AD curve

A: Aggregate demand is an economic measurement of the total amount of demand for all finished goods and…

Q: Assume that a decrease in investment expenditures drives the economy falls below full employment.…

A: In Keynesian economics, the economy is said to be in equilibrium at a point where the aggregate…

Q: Draw an AD-SRAS diagram, where the economy is initially at equilibrium and input prices do not move…

A:

Q: According to Prof Martin "An increase in government spending drives up or increases the private…

A: Crowding out effect appears when the government adopts the policy of expansionary fiscal policy and…

Q: Draw the AD/AS graph for the situation being described Explain one monetary policy action to correct…

A: Recession is a period when economy's real GDP is less than full employment.

Q: Why does the AD curve slope downward? Explain using the interest rate effect. Derive the AD curve…

A: The Aggregate Demand (AD) curve slopes downwards because of several key effects:Wealth Effect: When…

Q: Question 3. Define stagflation. Using AD/AS diagram, examine the possible factors that can lead to…

A: The economies around the world tend to operate upon the basis of the forces of expenditures, and…

Q: The AD/AS model is static. It shows a snapshot of the economy at a given point in time. Both…

A: The aggregate demand-aggregate supply model is a Keynesian macroeconomic model that graphically…

Q: In the AD-SRAS-LRAS model, what is the only possible way to simultaneously lower inflation (downward…

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

Q: Use the AS/AD model to determine how each of these events will affect the economy. Determine if the…

A: The objective of the question is to determine the position of the economy with respect to the…

Q: Suppose the level of structural unemployment increases. Describe how the increase in structural…

A: Unemployment is a situation that arises in the economy when willing and able individuals are not…

Q: Suppose the level of structural unemployment increases. How would you illustrate the increase in…

A: Different types of unemployment have a different impact on the economic aggregated demand aggregate…

Q: Draw an AD/AS model in purely competitive long run initial equilibrium. Label the price level P*=100…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: None

A: Let's start by plotting the aggregate demand (AD) and aggregate supply (AS) curves based on the data…

Q: Assume the following to answer the following questions:  C= 1000+ .9 (Y-T) Tax rate = 0.1Y Imports…

A: Aggregate demand is a way to measure how many goods and services people buy. It's usually reported…

Q: Is ‘zero unemployment’ desirable? Explain Define the three ranges of the aggregate supply curve in…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain how unemployment and inflation impact the AD/AS model.

A: The aggregate demand–aggregate supply model is a macroeconomic model that determines the level of…

Q: The AD/AS model can help us understand that inflation can be caused by: decreases in SRAS or…

A: Inflation computes how much more expensive a set of products and services has become over a certain…

Q: In an effort to boost output, the government passes a large fiscal stimulus that raises government…

A: The shape of AS curve changes according to the time. So in the very short run, it is parallel to the…

Q: Consider a standard AD-AS model. An increase in the interest sensitivity of consumption and/or…

A: In an economy, the AD-AS model is used to make an analysis of the market condition, and AD-AS curves…

Q: Which of the following could shift the DAD (dynamic AD) curve to the right, all else equal? an…

A: The dynamic aggregate demand curve is the representation of  negative relationship between the…

Q: In an AD-AS model, one can distinguish between two broad types of macroeconomic policy measures,…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: Notice the major differences between our Keynesian Cross (in your chapter 9 appendix) and the Macro…

A: When short run aggregate supply (SRAS) equals aggregate demand, it is called short run macroeconomic…

Q: How is pressure for inflationary price increases shown in an AD/AS model?

A: Aggregate Demand(AD) curve shows the relationship  b/w the price(P) and the quantity demanded(Qd)…

Q: Define stagflation. Using AD/AS diagram, examine the possible factors that can lead to stagflation…

A: Economics as a subject was developed since there was a limited amount of resources on earth.…

Q: In the AD/AS model, a short-run inflationary boom can occur which returns to full employment in the…

A: The equilibrium occurs when aggregate demand and aggregate supply are equal. The economy might…

Q: Tax cuts are more effective in generating the economy when the economy is in recession compared to…

A: The reduction in taxes that is being made by the government is known as a cut in taxes. This leads…