The table gives an economy's aggregate demand, short-run aggregate supply, and long-run aggregate supply schedules. Price level (GDP deflator, 2009-100) 100 110 120 130 The graph shows OA no output Real GDP Real GOP supplied demanded in short run B. an inflationary C. a recessionary 700 600 500 400 gap. Real GDP supplied in long run (billions of 2007 dollars) 200 300 400 500 Draw the LAS curve, the SAS curve and the AD curve. Label the curves. Draw a point at the short-run macroeconomic equilibrium. Draw a horizontal arrow at the equilibrium price that shows the output gap. 550 550 550 550 140 130- 120 110- 100- Price level (GDP deflator, 2007-100) 200 400 600 Real GDP (billions of 2007 dollars) >>> Draw only the objects specified in the question. 800 ✅du G

The table gives an economy's aggregate demand, short-run aggregate supply, and long-run aggregate supply schedules. Price level (GDP deflator, 2009-100) 100 110 120 130 The graph shows OA no output Real GDP Real GOP supplied demanded in short run B. an inflationary C. a recessionary 700 600 500 400 gap. Real GDP supplied in long run (billions of 2007 dollars) 200 300 400 500 Draw the LAS curve, the SAS curve and the AD curve. Label the curves. Draw a point at the short-run macroeconomic equilibrium. Draw a horizontal arrow at the equilibrium price that shows the output gap. 550 550 550 550 140 130- 120 110- 100- Price level (GDP deflator, 2007-100) 200 400 600 Real GDP (billions of 2007 dollars) >>> Draw only the objects specified in the question. 800 ✅du G

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When the economy goes into a recession. real GOP---- and unemployment ___ .a. rises, risesb. rises, fallsc falls. risesd. falls, falls
Given the following aggregate aggragate supply šchedule.() Price level Real GDp Deman ded Real GDP Supplied Short-RuN 70 80 90 100 110 450 400 350 300 350 400 450 500 250 350 4 the potential RGDP iŷ 450 units of us¢o 4) Draw and Show the short-run economic equilibrium and evaluate the situation by comparing with the long (hAs)explain this sifuation. geyate suppy (LAS) run aggregeafe plain ttis situation
ans ences rations If in Year 1 the price level was 100 and real GDP was $20 trillion and in Year 2 the price level was 105 and real GDP was $21 billion, then the predominant change that occured in Year 2 was OA a decrease in aggregate demand. B. an increase (shift to the right) in short-run aggregate supply. OC. a decrease (shift to the left) in short-run aggregate supply OD. an increase in aggregate demand.
Explain the influence of each of the following events on the quantity of real GDP supplied and aggregate supply in India and use a graph to illustrate. A. Fuel prices rises
5 k es Price Level 170 150 130 110 90 The Economy of Morin 70 460 480 500 520 54535,75 580 600 Real GDP AD AS a. If potential GDP (LAS) is $550, and the economy is presently in equilibrium, then there is a(n) [recessionary b. In order to close this gap aggregate demand must increase by $ billion. gap of $ billion. c. If every $1 change in government spending leads to a $4 change in aggregate demand, government spending must increase by $ billion.
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3. In Keynesian short run aggregate supply curve segment what happens to the price and income (GDP) if the aggregate demand curve shifts outward or inward and why
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PRICE LEVEL a a" a" LRAS Y, Y₂ QUANTITY OF OUTPUT 8 a. rising price level and a falling level of output, as the economy moves to point A. b. falling price level and a falling level of output, as the economy moves to point C. c. falling price level and a rising level of output, as the economy moves to point A O d. rising price level and a rising level of output, as the economy moves to point C. SRAS, SRAS Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a AD
Figure 34-3 PRICE LEVEL a a a LRAS Y, Y₂ QUANTITY OF OUTPUT SRAS. SRAS. AD Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a falling price level and a falling level of output, as the economy moves to point C. falling price level and a rising level of output, as the economy moves to point A. rising price level and a falling level of output, as the economy moves to point A. Orising price level and a rising level of output, as the economy moves to point C.
Figure 6 PRICE LEVEL LRAS Y, Y₂ QUANTITY OF OUTPUT SRAS; SRAS, AD 15. Refer to Figure 6. Starting from point A and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a a. falling price level and a falling level of output, as the economy moves to point C. b. rising price level and a falling level of output, as the economy moves to point B. c. falling price level and a rising level of output, as the economy moves to point B. d. rising price level and a rising level of output, as the economy moves to point C.