Russia-Ukraine conflict. 4.1 Suppose this incidence affects Russia’s economy as followed: (1) a sharp reduction in net-export (NX) in the short-run and (2) a decline in capital stock in the long- run. With the aid of AD & AS diagram, elaborate the impacts on both price level and quantity level in Russia (including adjustment process), both in short-run and long-run. 4.2 After the incidence, Russian government wishes to restore the economy back to normal (prior to the conflict). Which policies should the Russian government impose? State the policies. With the aid of AD & AS diagram, elaborate how the initial (prior to the conflict) equilibrium is restored (including adjustment process), both in short-run and long-run.
4. Russia-Ukraine conflict.
4.1 Suppose this incidence affects Russia’s economy as followed: (1) a sharp
reduction in net-export (NX) in the short-run and (2) a decline in capital stock in the long- run. With the aid of AD & AS diagram, elaborate the impacts on both
4.2 After the incidence, Russian government wishes to restore the economy back to normal (prior to the conflict). Which policies should the Russian government impose? State the policies. With the aid of AD & AS diagram, elaborate how the initial (prior to the conflict) equilibrium is restored (including adjustment process), both in short-run and long-run.
Step by step
Solved in 2 steps with 2 images
