The table below shows information on aggregate supply, aggregate demand and the price level for the imaginary country of Xurbia. Price Level AD AS 110 700 600 120 690 640 130 680 680 140 670 720 150 660 740 160 650 760 170 640 770  Plot the AD/AS diagram from the data shown (Don't have to show graph but do draw it to help you answer the questions). a.  Identify the equilibrium. b.  Imagine that as a result of a government tax cut, aggregate demand becomes higher by 50 at every price level. Identify the new equilibrium. c.  How will the new equilibrium alter output? How will it alter the price level? What do you think will happen to employment?

Q: Determinants of aggregate demand The following graph shows a decrease in aggregate demand (AD)…

A: The changes in the determinants that will lead to a fall in aggregate demand are:Consumer…

Q: Suppose firms are optimistic about the outlook of the economy and they decide to increase…

A: The equilibrium is established where the aggregate demand and aggregate supply are equal.  The…

Q: Suppose that a consulting firm has generated the following information about the economy of H:

A: a. We have enough information to calculate growth rate in export.

Q: c. How will the shift in AD affect the original output, price level, and employment?

A: The curve that depicts various quantities of goods and services beings demanded at various levels of…

Q: From 1/1/2020 to 7/1/2020, real GDP decreased but the GDP deflator stayed approximately the same…

A: In an economy, changes in real GDP and nominal GDP will affects the the value of GDP deflator and it…

Q: Make a graph that shows where Indonesia currently is on the business cycle. Can you also include an…

A: The economies around the world work according to the changes in the changes in their consumption…

Q: A policymaker claims that tax cuts led the economy out of a recession. Can we use the AD/AS diagram…

A: A reduction in the tax rate will increase the AD, because individuals will have more money in their…

Q: Create a graph that shows where Mexico currently is on the business cycle. Be sure to include an…

A: Mexico is currently running into recession attributing the pandemic situation and fiscal tightening…

Q: AD-AS (aggregate demand/supply) Changes What things cause aggregate demand to shift?  Why does each…

A: (a)In economics, AD can be stated as the aggregate/total demand of all the final services and goods…

Q: In the graph you've just made, what is equilibrium real GDP and the price level if aggregate demand…

A: Note: The given graph does not have 'AD3' curve. But, in the blank section, the price level of 110…

Q: The graph below shows the AD-AS diagram for Brazil. Suppose that the economy is initially in…

A: We are going to use the concepts such as short run equilibrium and long run equilibrium to answer…

Q: Plot an AD/AS diagram from the data above. Identify the equilibrium. Would you expect unemployment…

A: Total demand and total supply in the economy are referred to as aggregate demand and aggregate…

Q: 1000 Real GDP What is the price level in the new long-run equilibrium as a result of this shift? NƠ…

A: Aggregate demand curve represents the sum  of quantity demanded by all the consumers in the economy…

Q: Use AD/AS model to solve the following problems. You have to DRAW and explain AD/AS model. Hydraulic…

A: The AD/AS (Aggregate Demand/Aggregate Supply) model is a way to show how national income, output,…

Q: Please draw four AD/AS diagrams (t-0,1,2,3) to show how the Covid-19 pandemic has affected our…

A: Aggregate Demand and Aggregate Supply  Aggregate demand refers to the entire amount of demand for…

Q: Assume there is a particular short-run aggregate supply curve for an economy and the curve is…

A:

Q: Use the basic AD-AS model to illustrate and describe the effect of unexpected increase in the  oil…

A: The unexpected increase in the price of oil means that the cost of production in the economy will…

Q: In the above figure, for a shift from AD1 to AD2, the aggregate demand decreases by     1)  110.…

A: Aggregate demand is the total amount of goods and services demanded at each price level in an…

Q: Suppose the U.S. Congress passes significant immigration reform that makes it more difficult for…

A: If the U.S passes the notable immigration reforms as portrayed would decrease the supply of labour…

Q: Imagine that in the year 2025, China’s economy increases significantly, causing an increase in…

A: The income of a person and their consumption are directly related. If the income of a person rises,…

Q: include a graph that shows where Canada currently is on the business cycle. Also include an AD-AS…

A: The economies around the world works according to the changes in the changes in their consumption…

Q: In the year 2027, aggregate demand and aggregate supply in the imaginary country of Daisen-Oki are…

A: Aggregate demand is the total demand for goods and services in an economy at a given time period. It…

Q: Using the “dynamic aggregate demand” and “dynamic aggregate supply” (DAD/DAS) model: (a) draw a…

A: The dynamic aggregate demand and supply (DAD/DAS) model is a macroeconomic model that shows how…

Q: How would you draw an ADAS diagram showing an event that caused the aggregate demand to shift?( my…

A: Macroeconomic monitoring will continue to be important since it dictates the economy's long-term…

Q: (Please attach a graph showing your work for each question) Suppose that the oil price sharply…

A: Meaning of Aggregate Demand and Aggregate Supply: The term aggregate demand refers to the…

Q: What has happened to the macroeconomic over the past two years? What is happening with the…

A: Macroeconomics is the study of a country's or region's overall economic behaviour.. It is concerned…

Q: Describe the economic effects of the current pandemic. How would it affect the Aggregate Demand and…

A: Due to pandemic all countries in the world affected economically as well as financially. Most of the…

Q: An event occurred in country C. The effects of the event can be described by the following AD-AS…

A: Understanding the AD-AS Model:AD Curve (Aggregate Demand): Represents the total quantity of goods…

Q: The graph below shows the AD-AS diagram for Spain. Suppose that the economy is initially in long-run…

A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…

Q: None

A: Let's start by plotting the aggregate demand (AD) and aggregate supply (AS) curves based on the data…

Q: Using an AD/AS diagram (starting from long-run/full employment equilibrium), graphically show and…

A: The link between the amount of a product provided and its price, while maintaining other variables…

Demand and Supply

The concept of demand and supply is important for various factors. One of them is studying and evaluating the condition of an economy within a certain period. The analysis or evaluation of the demand-side factors is important for the suppliers to understand the consumer or individual behaviour. The evaluation of supply-side factors is important for the consumer or individuals to understand that what kind of combination of an economic good or what kind of economic good and services he or she should consume to maximise his utility and minimise the cost. Therefore, in microeconomics, both of these concepts are extremely important to have an idea that what exactly is going on in the economy.