Use the accompanying graph to answer the following questions: Price Level 2 4 6 8 AS AD 12 14 16 18 20 dº Real GDP (in billions of dollars per year) billion. Tools QE Instructions: Enter your responses as a whole number. a. Identify the macro equilibrium. Instructions: Use the tool provided 'QE' to identify the current macro equilibrium on the graph. The current macro equilibrium is when real GDP is $[ b. The real GDP gap is $ billion. c. The AD excess is $ billion. -? OF billion. d. Identify the new equilibrium that would occur with appropriate fiscal policy. Instructions: Use the tool provided 'QF' to identify the new equilibrium that would occur with appropriate fiscal policy. This full-employment GDP is $1

Use the accompanying graph to answer the following questions: Price Level 2 4 6 8 AS AD 12 14 16 18 20 dº Real GDP (in billions of dollars per year) billion. Tools QE Instructions: Enter your responses as a whole number. a. Identify the macro equilibrium. Instructions: Use the tool provided 'QE' to identify the current macro equilibrium on the graph. The current macro equilibrium is when real GDP is $[ b. The real GDP gap is $ billion. c. The AD excess is $ billion. -? OF billion. d. Identify the new equilibrium that would occur with appropriate fiscal policy. Instructions: Use the tool provided 'QF' to identify the new equilibrium that would occur with appropriate fiscal policy. This full-employment GDP is $1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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会 M * 00 b. 30 20 PRICE LEVEL A ng.cengage.com Cengage Learning MindTap - Cengage Learning E Assignments CENGAGE MINDTAP Q Sea Aplia Homework: Aggregate Supply and Macroeconomic Equilibrium 0. M. 09 C. 40 2 3 9. REAL GDP (Trillions of dollars) 8 4. 5. 7. 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 Not Shown Long-run aggregate supply (LRAS) Aggregate demand (AD) Short-run aggregate supply (SRAS) when the economy is at long-run equilibrium Short-run aggregate supply (SRAS) when there is an inflationary gap Short-run aggregate supply (SRAS) when there is a recessionary gap MacBook Air esc 08 F1 F2 F3 F4 F5 F8 i 23 2$ 2 3. 9. 4. 7. 8. tab R. A K caps lock H. shift B.
Match each definition to the appropriate component of aggregate demand. Definition The sum of the expenditures of business firms on new plant, equipment, and software and of households on new homes The goods and services purchased by all levels of government The total amount spent by consumers on newly produced goods and services The difference between exports and imports ⒸNet exports O Government spending Consumer Expenditure Which of the following components represents the largest piece of aggregate demand? O Consumer expenditure O Investment spending O Which of the following components represents the smallest piece of aggregate demand? O Consumer expenditure O Government spending O Investment spending ONet exports Investment Spending Government Spending Net Exports O O O O
A(I) and (ii) pls!
E Which of the following staternents is correct? The aggregate price level is a subject of concerm in microeconomics. a. b. A study of employment in the semiconductor industry would be categorized as a microeconomic study. The C. production and growth of output in the domestic economy is microeconomic concerm. d. Microeconomics is an in-depth study of aggregate economic behavior. Microeconomics includes the study of fiscal and monetary policies, or govermment policies designed to steer the economy in the right direction, е. ces O vi 6:59 9
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Draw diagram of a typical IS-LMmodel and indicate the changes in all the variables on the diagram should there be an increase in aggregate expenditure causing a shift of the IS curve to the right ( indicate the shift in the IS curve on your diagram) Indicate where macroequilibrium will be and properly label the axes on the diagram. Briefly explain what you understand such an IS-LM model is actually reflecting in terms of macroeconomics
Price level (GDP price Index 2012-100) Pocential AS 130 GDP 120 110 100 90 AD 19.0 195 20.0 20.5 21.0 21.5 Real GDP (trillons of 2012 dollars) In the figure above, the economy is at an equilibrium with real GDP of $20 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the curve shifts because O a. aggregate supply; leftward; the money wage rate rises O b. aggregate supply; rightward; the money wage rate falls O c. aggregate demand; leftward; the money wage rate rises d. potential GDP; leftward; the money wage rate falls O e. aggregate demand; rightward; the money wage rate falls
The aggregate supply curve shows the relationship between the price level and the: O potential GDP in the economy. O total quantity of output that suppliers collectively produce. total quantity of output that buyers collectively plan to purchase. equilibrium GDP in the economy.
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Price Level 8 7 6 X 50 4 3 2 1 0 2 4 AS AD 6 8 10 12 14 16 18 20 Real GDP (in billions of dollars per year) billion. QE Instructions: Enter your responses as a whole number. a. Identify the macro equilibrium. Instructions: Use the tool provided 'QE' to identify the current macro equilibrium on the graph. The current macro equilibrium is when real GDP is $ Suppose that full-employment GDP is $13 billion. b. The real GDP gap is $ c. Aggregate demand must shift (left or right) by $ billion. billion to achieve the full-employment equilibrium.
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4. What do we mean when we talk about the export base of a region? How does an increase in the export base affect total employment? How does this relate to the multiplier? What factors limit the size of the multiplier within cities?