The graph in Figure I presents the annual GDP growth rate of the United States economy since the first quarter of 2004, while the graphs in Figure II represent three different scenarios of the relationship. between aggregate demand and supply that reflect different situations of economic growth. Answer the following questions in detail.Explain in detail what is happening in Graph B of Figure II and, after examining the data in the graph of Figure I, identify in what period of time said situation is occurring.Explain in detail what is happening in Graph C in Figure II and, after examining the data in the graph in Figure I, identify in what period of time this situation is occurring. Annual Percentage Change— Á Ń O N D ∞Q1- 2004Q1- 2006Q1-2008Q1-2010Q1-2012Q1-2014Q1-2016Q1-2018Q1- 2020[Quarter-Annual]Annual Percentage Change in U.S. Real GDP Table 1.1.1. Percent Change from Preceding Period in Real Gross Domestic Product[Percent] Seasonally adjusted at annual rateshttps://apps.bea.gov/iTable/iTable.cfm?reqid=19&step=2#reqid=19&step=2&isuri=1&1921=surveyFigura II - Representación del modelo de demanda y oferta agregadaNGP120115 ←4110Gráfica AOAL OAL13.0 14.0OACooDADAPIB (Miles demillones)NGPA1104-102Gráfica BOALDO110 12.0 13.0OALVOACDADAⓇPIB (Miles demillones)NGPA112110DAGráfica COACO13.0OAL15.0OACOALDAPIB (Milesde millones)

Answered: The graph in Figure I presents the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The graph in Figure I presents the annual GDP growth rate of the United States economy since the first quarter of 2004, while the graphs in Figure II represent three different scenarios of the relationship. between aggregate demand and supply that reflect different situations of economic growth. Answer the following questions in detail.

Explain in detail what is happening in Graph B of Figure II and, after examining the data in the graph of Figure I, identify in what period of time said situation is occurring.

Explain in detail what is happening in Graph C in Figure II and, after examining the data in the graph in Figure I, identify in what period of time this situation is occurring.

Annual Percentage Change
— Á Ń O N D ∞
Q1- 2004
Q1- 2006
Q1-2008
Q1-2010
Q1-2012
Q1-2014
Q1-2016
Q1-2018
Q1- 2020
[Quarter-Annual]
Annual Percentage Change in U.S. Real GDP

Table 1.1.1. Percent Change from Preceding Period in Real Gross Domestic Product
[Percent] Seasonally adjusted at annual rates
https://apps.bea.gov/iTable/iTable.cfm?reqid=19&step=2#reqid=19&step=2&isuri=1&1921=survey
Figura II - Representación del modelo de demanda y oferta agregada
NGP
120
115 ←
4
110
Gráfica A
OAL OAL
13.0 14.0
OACoo
DA
DA
PIB (Miles de
millones)
NGPA
1104-
102
Gráfica B
OALDO
110 12.0 13.0
OAL
VOAC
DA
DAⓇ
PIB (Miles de
millones)
NGPA
112
110
DA
Gráfica C
OACO
13.0
OAL
15.0
OAC
OAL
DA
PIB (Miles
de millones)

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Expert Solution

Step 1: Defining consumption function

The consumption function shows the relationship between real GDP and consumption levels.

The investment function shows the relationship between real GDP and investment levels.

Aggregate demand is made of four parts out of which two parts are consumption function and investment function and the remaining two parts are government spending and net exports.

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