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: Suppose, initially the Australian economy is at full employment (in other words the economyis at the…

A: Potential GDP or full employment level of GDP is the level of GDP which is produced using all…

Q: Which of the following is a statement that you would AGREE with? Explain why. Use the AD-AS model.…

A: Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…

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

A:

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

A: A wide concept that relies on market forces as the key factors under the output, costing, and…

Q: Draw and fully label an AD-AS model. Describe the short-run aggregate supply (SRAS) curve and the…

A: Graphical Representation:The AD-AS model is depicted on a graph with two axes:The vertical axis…

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: Draw the AS-AD model for the following scenario: The economy is hit by a negative AD shock. Assume…

A: The AS-AD model or model of aggregate demand and aggregate supply represents the AD and AS curves to…

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: Do you believe that the Hayek's classical AD-AS model explains the factors that cause changes…

A: The Hayek's classical AD-AS model can be illustrated as follows: In the figure, horizontal axis…

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: Consider the AD-AS model where the economy is currently at point A. Show the short-run effect of a…

A: The government regularly interferes in the market to prevent any malpractices like a decrease in…

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: 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: Using AD-AS model, explain how would each of the following events affect the economy both in the…

A: The full employment is a situation in which resources are fully employed and output levels thus…

Q: include a graph that shows where Canada currently is on the business cycle. Also include an AD-AS…

A: The economies around the world works according to the changes in the changes in their consumption…

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: macroeconomic equilibrium is equal to potential GDP. Americans are becoming more cautious with their…

A: AD - AS Model  The AD-AS model clarifies how changes in government strategies, variances in…

Q: Suppose that productivity growth in Country X's economy has fallen to less than 1% per year. This…

A: A) the growth rate of long-term productivityIn the neoclassical model, long-term productivity growth…

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: uppose the government sharply increases the minimum wage, raising the income of many workers.…

A: AD and AS model determines the output and price level in the economy. when AD=AS the economy…

Q: Apply current Australian economy to the AD/AS Model (Diagrams required) and determine which phase…

A: Oceania is a connected area with a number of governments and regions, each having its own economy.…

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: 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: The graph below shows the AD-AS diagram for Spain. Suppose that the economy is initially in long-run…

A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…

Q: Consider a standard AD-AS model. If the marginal propensity to consume is zero, a temporary tax cut…

A: Here, MPC=0, which means all the income is saved or Income=MPS As we can see the purple line is the…

Q: None

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

Q: The figure to the right illustrates the dynamic AD-AS model. Suppose the economy is in equilibrium…

A: Fiscal policy is the policy framed by government for regulating the economy by changing either…

Q: What must be true of the model parameters and variables of the AD-AS curves in the long-run…

A:

Q: If workers look around and see prices rising more quickly than they had planned for, what is the…

A: Pay adjusted for inflation, or wages expressed in terms of the number of goods and services that can…

Q: Answer the following questions using this table of information: Jun-2021 Sep-2021 Dec-2021 Price…

A: Australia (country A) maintains one of the planet's major mixed-market economies, characterized by a…

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…