Price level (GDP price level, 2005 = 100) 116- 112- Potential GDP AS 108- 104 100- 96- 92- 88- AD 84- 80- 530 540 550 560 Real GDP (trillions of 2005 yen) 570 580 >>> Draw only the objects specified in the questiorn The graph shows the Japanese economy at the beginning of 2010 Draw an aggregate demand curve that is consistent with a falling unemployment rate Label it AD, Draw an aggregate supply curve that corresponds to the price level falling and the economy still remaining in a recessionary gap Draw a point at the new macroeconomic equilibrium Click to enlarge graph The economic recovery will occur and deflation will ease if OA aggregate demand increase faster than aggregate supply increases OB. aggregate supply increases faster than aggregate demand increases OC. aggregate supply decreases with no change in aggregate demand O D. aggregate demand decreases with no change on aggregate supply

Price level (GDP price level, 2005 = 100) 116- 112- Potential GDP AS 108- 104 100- 96- 92- 88- AD 84- 80- 530 540 550 560 Real GDP (trillions of 2005 yen) 570 580 >>> Draw only the objects specified in the questiorn The graph shows the Japanese economy at the beginning of 2010 Draw an aggregate demand curve that is consistent with a falling unemployment rate Label it AD, Draw an aggregate supply curve that corresponds to the price level falling and the economy still remaining in a recessionary gap Draw a point at the new macroeconomic equilibrium Click to enlarge graph The economic recovery will occur and deflation will ease if OA aggregate demand increase faster than aggregate supply increases OB. aggregate supply increases faster than aggregate demand increases OC. aggregate supply decreases with no change in aggregate demand O D. aggregate demand decreases with no change on aggregate supply

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1QR

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Aggregate Demand Domestic Demand GDP (MP) Growth %Change Growth % Rates % of Rates % Change of Domestic Demand year Aggregate Demand 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Suppose this table into 3 categories (2008-2013), (2013-2017) & (2017-2021) and Comparative and critical analysis of the three categories based on your understanding.REPLY FAST PLZ 2.2 3.2 0.9 -0.59 1.4 -0.56 3.5 2.88 2.2 0.57 -0.31 3 -0.14 1.5 5.9 0.96 8 4.33 4.68 0.21 3.15 0.606 0.006 0.044 4.71 4.89 0.55 4.5 5.23 0.069 7.08 0.57 7.25 0.39 9.18 0.29 9.2 0.26 8.5 -0.07 8.5 -0.08 10.2 0.2 9.1 0.07 6.6 -0.35 6.4 -0.29 15.6 1.36 15.8 1.47
PRICE LEVEL 160 150 140 130 120 110 100 90 80 0 с 1 d X a 2 3 4 5 REAL GDP (Trillions of dollars) 6 + 7 b H 8 (?) Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on the graph, choose Not Shown. Description Short-run aggregate supply (SRAS) when there is a recessionary gap Aggregate demand (AD) Short-run aggregate supply (SRAS) when there is an inflationary gap Short-run aggregate supply (SRAS) when the economy is in long-run equilibrium Long-run aggregate supply (LRAS) a O b O O O с O O O O d O O Not Shown
Economic On April 27, 2023, the U.S. Bureau of Economic Analysis (BEA) released the data on GDP growth for the US economy for the first quarter of 2023 and revealed that the economy grew sluggishly by only 1.1 percent. Based on this report, suppose the U.S. consumers and businesses start to become pessimistic about the direction of the economy and eventually cut consumer and business spending, analyze using the IS-LM and AD-AS frameworks the short and long-run effects of such a shock on prices, output, and real interest rate.
13. Assume that we compute current dollar GDP for 2021Q2 and find that it rose 2% from 2020Q2. But we also find that general prices rose over the same period by the same amount, 2%. Is the country better off, worse off, or about the same when it comes to output? Explain.
3 Return to question 10 points 02:34:47 The graph below shows, the aggregate demand and supply for the economy of Etrusca. a. Draw AD2 on the graph below assuming an increase of $60 in aggregate demand. Plot only the endpoints of the curve below. Your Graph Score: 0% Price index 140 130 120 110 100 90 90 80 200 240 280 320 360 400 440 480 520 560 Real GDP b. What is the new level of equilibrium GDP? $ 380 c. What is the new equilibrium price level? 55 AS AD AD2 d. How much is the reduction in GDP due to the crowding out effect? $ 120
The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with a period of six or more months of declining real gross domestic product (real GDP). Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as ________ (options: a recession, a business cycle, an expansion) True or False: Short-term fluctuations in real GDP are irregular and unpredictable. Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1958? Check all that apply.A. Industrial production declined.B. Consumer spending increased.C. The unemployment rate declined.D. Home sales declined.
Can you inform from the graph the movement of the price level in the economy since the beginning of 2021? Explain GDP Were we ever in a recession during the period? How do you know?
Question 47 The graph below shows the AD-AS diagram for Brazil. 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). 1200 ADX 1100- 1000 Price Level ADR 900- 800 700 600 500RASI 400* 300 200- 100- < 100 LRAS 200 300 400 500 600 700 800 900 1000 1100 120 Real GDP What is the price level in the new long-run equilibrium as a result of this shift?
Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. Year Units of Output Price Per Unit $2 ITT 1 8. 2 10 3 3 15 4 4 18 20 6 a) If year 2 is the base year, then the percentage increase in real GDP from year 2 to year 4 is: percent. b) If prices increased, we need to adjust nominal GDP values to give us a measure of GDP for various years in constant-dollar terms. We refer to that adjustment as: ( Inflating ; Deflating; Compounding GDP ; Indexing ) GDP. <-- Circle a correct answer! c) If the Consumer Price Index rises from 300 to 333 in a particular year, the rate of inflation in that year is: percent. d) Amy sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1,200 to kids attending the prom. The total…
Suppose you are given the following information about an economy: Short run Aggregate Supply: SRAS = Y = 5000r+ 14,400 Long run Aggregate Supply: Aggregate Demand: Investment Spending: Consumption Spending: Government Spending: Net Exports (eX – iM): LRAS = Y* = 25,000 AD = Y=C+I+G+NX_ I = 4000 – 250r C = 1000 +0.75(Y – T) G = 2000 NX = 500 Taxes – Transfers: T = 2400 Monetary Policy: Money Demand: Money Market equilibrium: Fisher equation: where i is the nominal interest rate (i.e. when the interest rate is 7%, it means i= 7) r = 2 n м 3 20,000- 2000i M$ = MD i = r+T e. Find the short run equilibrium level of real GDP (Y), and inflation rate (t), in the short run. What is the output gap in the economy? Is it an expansionary or recessionary gap?
Refer to the below tale for the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. Give the nominal GDP for year 4 ( Note: that the answer should be the dollar sign and a number with no space between the two.) Units of Price Year output per unit 16 $2 20 3 30 36 40 3 456 12345
Consider the following table showing the breakdown of GDP (in billions) for China. GDP Category Amount (in billions) Wages and Salaries 1000Consumption 1700Investment 700Depreciation 50Government Expenditure100Taxes 300Exports 50Imports 40Income receipts from rest of the world10Income payment to rest of the world50 What are net exports for China? 4. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions)What is the growth rate of GDP in Japan?Use the following information to answer questions 5 through 15: The tables below show data on prices and quantities of Oranges and Shoes produced in China. Data for 2014Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes0.7 200 10 270Data for 2015Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes0.9 150 14 250Data for 2016Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes1.4 300 15 3305. Given this data, what is the Nominal GDP in 2014?6. What is the Nominal GDP in…