pajagei iagrams, if useful or required, in explaining your answer. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. ssume the economy of Andersonland is in a long-run equilibrium with full employment. In the short run, nominal wages are fixed. a. Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, and aggregate demand. Show each of the following. i. Equilibrium output, labeled Y1 ii. Equilibrium price level, labeled PL1 b. Assume that there is an increase in exports from Andersonland. On your graph in part (a), show the effect of higher exports on the equilibrium in the short run, labeling the new equilibrium output and price level Y2 and PL2, respectively. c. Based on your answer in part (b), what is the impact of higher exports on real wages in the short run? Explain.

pajagei iagrams, if useful or required, in explaining your answer. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. ssume the economy of Andersonland is in a long-run equilibrium with full employment. In the short run, nominal wages are fixed. a. Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, and aggregate demand. Show each of the following. i. Equilibrium output, labeled Y1 ii. Equilibrium price level, labeled PL1 b. Assume that there is an increase in exports from Andersonland. On your graph in part (a), show the effect of higher exports on the equilibrium in the short run, labeling the new equilibrium output and price level Y2 and PL2, respectively. c. Based on your answer in part (b), what is the impact of higher exports on real wages in the short run? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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