“John Maynard Keynes introduced the AD-AS macroeconomic model (aggregate demand- aggregate supply) to determine the equilibrium level of real output and the level of prices in the economy” 1. Draw a diagram with aggregate demand, short-run aggregate supply, and long-run aggregate supply.  2. Discuss the reasons why the aggregate demand curve is downward sloping, while the short-run aggregate-supply curve is upward sloping?

Q: The imaginary country of Harris Island has the aggregate supply and aggregate demand curves as shown…

A: Economy achieves equilibrium when total demand is equal to total supply which means where AD=AS.

Q: 31. Which of the following shifts the aggregate supply curve? an increase in the price of oil b. C.…

A: In an economy, aggregate supply curve is the curve that depicts the overall production of output…

Q: c. How will the shift in AD affect the original output, price level, and employment?

A: The curve that depicts various quantities of goods and services beings demanded at various levels of…

Q: Please do fast asap with proper explanation and calculation.

A: The shortrun equilibrium price is the price level where the aggregate demad is equal to shortrun…

Q: Aggregate Demand is the prime mover of the economy." This statement was made by a: A. Classcal…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.  So, AD…

Q: Determine whether each of the following would cause a shift in the aggregate  demand curve , A shift…

A: The question has several parts. But we can provide solution of only first three parts. To get other…

Q: The figure given below represents the equilibrium real GDP and price level in the aggregate demand…

A: Stagflation refers to a situation where there is simultaneous inflation and unemployment in the…

Q: QUESTION ONE "Fluctuations in employment over the business cycle bring fluctuations in real gross…

A: Aggregate supply in the economy is identified as the total amount of goods and services that…

Q: An economy attained a long-run equilibrium at point A. How does the price adjust in the long run…

A: Over the long run, economy is at the natural rate of output.  Economy might move above the natural…

Q: The short-run equilibrium output level is $6 trillion exists in the labor market of this economy. ,…

A: The level of production produced by enterprises and the price level over the long term are related…

Q: a. People have less disposable income on their hand due to an increase in the taxes b. Investors…

A: Introduction The volume of products and services traded at a given price is aggregate demand and…

Q: Use the following graph to answer the next seven questions. The graph depicts an economy where…

A: A recession in the worldwide economy brought down the demand for U.S. trades, so this part of…

Q: a. Draw a graph showing Acadia's ADo, ADI, ASo, and ASI. Plot only the endpoints of the two…

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

Q: Which of the following is consistent with the theory of aggregate supply? a. An increase in the…

A: Aggregate supply refers to the sum of all the goods and services produced and sold at a particular…

Q: The downward slope of the aggregate-demand curve shows that:       A.  a fall in the price level…

A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…

Q: Using the “dynamic aggregate demand” and “dynamic aggregate supply” (DAD/DAS) model: (a) draw a…

A: The dynamic aggregate demand and supply (DAD/DAS) model is a macroeconomic model that shows how…

Q: Assume the economy of Chile is in a long-run equilibrium with full employment. In the short run,…

A: The long-run aggregate supply curve is the graphical representation of aggregate supply data in the…

Q: Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar…

A: Here MPC = 0.75 And MPS = 0.25 Multiplier = 1 / MPS = 4 Now, Increase in government spending = 250…

Q: The following table presents information on average price level and output (Real GDP) for Nickeltown…

A: Aggregate Demand (AD) curve is downward sloping (negative slope) because there is an inverse…

Q: In 2013, Prussia's aggregate demand curve was determined by the equation M + 1-4% A change in…

A: The quantity theory of money:The quantity theory of money equation can be written as follows:

Q: macro-economy

A: Normal 0 false false false EN-IN X-NONE X-NONE…

Q: 7. Market Watch reports, "What happens if the oil rally turns into an 'oil shock'? " Graphically…

A: Oil shock is the rise in the price of oil, often caused by the decrease in supply of oil.

Q: Identify which curve on the previous graph corresponds to each of the following descriptions. If the…

A: In short run, economy is in equilibrium when aggregate demand and short run aggregate supply are…

Q: a) List the components of country’s GDP in an open economy. For each component, provide an  example…

A: A GDP is the value of final goods and services produced within domestic boundaries in a given period…

Q: Assume initially an economy is at its long run equilibrium. Then, price of oil in the world…

A: Equilibrium in the economy is reached where aggregate demand is equal to aggregate supply.

Q: Consider each of the following events and then figure out how each of these events will affect the…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: What is the relationship between the price level and the following components of aggregate demand?…

A: In macroeconomics, the word "aggregate demand" refers to the overall demand for commodities produced…

Q: Suppose the economy is in a situation of moderate unemployment, and then an exogenous increase of…

A: If the economy is in a situation of moderate unemployment in short run, it has ability to employ…