mitially, an economy has a maximum real GDP of $5 trillion. .) Using the line drawing tool, draw the long-run aggregate supply curve. Label it LRAS,. .) Then suppose that increases in labor productivity increase the productive capacity of the economy. Using the line drawing tool, draw the new long-run aggregate supply curve. Label it LRAS2. Carefully follow the instructions above, and only draw the required objects.

mitially, an economy has a maximum real GDP of $5 trillion. .) Using the line drawing tool, draw the long-run aggregate supply curve. Label it LRAS,. .) Then suppose that increases in labor productivity increase the productive capacity of the economy. Using the line drawing tool, draw the new long-run aggregate supply curve. Label it LRAS2. Carefully follow the instructions above, and only draw the required objects.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the economy is initially in long-run equilibrium with the price level of 800. Now suppose that the Aggregate Demand (AD) curve shifts left from AD1 (blue) to AD2 (green). Price Level 1200+ 1100 1000 ADX 900- 800 AD 700- SRASI 600* 500 400 300 200 100 LRAS 200 300 400 500 600 700 800 900 Real GDP What is GDP in the new long-run equilibrium as a result of this shift? 100 1000 1100 120
The graph shows a long-run aggregate supply curve and a short-run aggregate supply curve. Draw an arrow along one of the curves that illustrates a rise in the price level when the money wage rate remains unchanged. Label it 1. Draw an arrow along one of the curves that illustrates a rise in the price level accompanied by the same percentage rise in the money wage rate. Label it 2. An increase in the price level when the money wage rate remains unchanged increases OA. potential GDP OB. the quantity of real GDP supplied OC. aggregate supply OD. factor prices by the same percentage as the increase in the price level
1. Which of the following could cause a shift from AD to AD₁, ceteris paribus? PRICE LEVEL a a Figure 10.1 REAL OUTPUT ($ billions per year) B) an increase in exports A) a decrease in investment AD OC) an increase in consumer confidence OD) an increase in consumption AS 4
Price Level 0 AS₁ a ASO b c Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo, then: a surplus of real output of gh yould f represents a price level that would result in a surplus of real output of ac f represents a price level that would result in a shortage of real output of ac f represents a price level that would result in a surplus of real output of a at any price level above g. a shortage of real output would occur occur
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Please draw on top of graph
Only Answered D.
Aggregate Demand and Aggregate Supply (AD-AS) Model (Chapter 13) 5.1 Why does the short-run aggregate supply curve slope upward? 5.2 Explain why the long-run aggregate supply curve is vertical. Then, explain how each of the following events would affect the long-run aggregate supply curve. A lower price levels b. A decrease in the labor force A decrease in the quantity of capital goods d. Technological change a. с. 5.3. Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when there is a decline in wealth. Explain how the economy moves back to full employment.
I don't know what I did wrong with my graph. equilibrium (65, 145)
18. Use the AD/AS model to illustrate the following. Draw 6 graphs by hand. Show how the AD or the AS curve shift and in what direction (left or right). Also state what happens to equilibrium real GDP (Y), employment, and the equilibrium price level. [Note: Use the SRAS curve, not the LRAS.] a. an increase in government spending and/or transfer payments b. restrictive fiscal policy c. expansive monetary policy d. increase in investment according to Keynesians e. increase in investment according to supply-side economists f. a stock market crash
The aggregate production curve is a 45 degree line. [True or False] – Explain Why
In order to improve the living standards of the people in Philippines after the devastating typhoon Haiyan, the government decided to increase the labour wage per hour from AUD 17.50 to AUD 25.00. Also, Philippines experienced structural unemployment and frictional unemployment. The figure below indicates that the aggregate demand curve slopes left to right downwards. 1)Explain the factors that account for the shape of the Aggregate demand curve. Graph: