On the graph, label your starting AD line as AD 2019. Draw a new AD line showing the change to AD due to the pandemic. Label your starting SRAS line as SRAS 2019. Draw a new SRAS line showing the change to supply due to the pandemic.Label the new short-run equilibrium RGDP and Price Level. Does output (i.e. RGDP) increase or decrease in your model?Does the price level increase or decrease in your model?According to the AD-AS model when RGDP falls the unemployment rises and vice versa. Does your graph indicate an increase or decrease in the unemployment rate AveragePrice levelSRASADYOutputP. FRED- Consumer Price Index for All Urban Consumers: All Items in U.S. City Average2.52.01.51.00.50.0-0.5-1.0Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021Q3 2021Q4 2021Percent Change of (Index 1982-1984=100)

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Answered: On the graph, label your starting AD…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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On the graph, label your starting AD line as AD 2019. Draw a new AD line showing the change to AD due to the pandemic. Label your starting SRAS line as SRAS 2019. Draw a new SRAS line showing the change to supply due to the pandemic.Label the new short-run equilibrium RGDP and Price Level.

Does output (i.e. RGDP) increase or decrease in your model?
Does the price level increase or decrease in your model?
According to the AD-AS model when RGDP falls the unemployment rises and vice versa. Does your graph indicate an increase or decrease in the unemployment rate

FRED
- Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Percent Change of (Index 1982-1984=100)

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