Which of the following is true regarding the aggregate demand-aggregatesupply model given the following scenario: The value of a dollar hasdecreased.Select 2 correct answer(s)The unemployment rate would be greater than the natural rate ofunemployment rate.The output would exceed output at full-employment.It would be more expensive to obtain USD in comparison to foreigncurrency.Aggregate demand would increase.

1. Aggregate demand would increase: In the aggregate demand-aggregate supply (AD-AS) model,…

Answered: Which of the following is true…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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One benefit to falling aggregate demand is that unemployment falls. unions lose clout. price levels go down.
The Australia Federal Government established a AUD 2 billion grant to help sectors affected by the bushfires to get the support they needed to recover. Use the Aggregate Demand and Aggregate Supply Model below to answer the questions that follow. 1. Using the Aggregate Demand and Aggregate Supply Model did the 2019/20 cause economic expansion or economic contraction in Australia. Name at least three sectors that were affected by the bushfires and examine the impact of the bush fires to the economy of Australia. 2.Employ the Aggregate Demand and Aggregate Supply Model to explain the benefits of the Australia government AUD2 billion grant to the economy.
QUESTION 1 Consider the aggregate supply-aggregate demand (AD-AS) model that we saw in class. Assume that prices are fixed in the short run and are fully flexible in the long run. The initial full-employment level of output is Y=900 and the initial price level is P=100: The aggregate demand curve is given by Y= 1500 - 6P: Scenario 1, short run: A reduction in personal income taxes shifts the demand curve to Y=1530 - 6P. In the short run, the output is and the price level is Note: Type in your answer rounded to two decimal places, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard may automatically delete it and you should not do anything about it. In case of percentages, do not type in the percentage symbol "%".
Which of the below is one of the reasons that the Aggregate Demand curve is downward sloping? The income effect of a price change, aggregated across many markets The substitution effect of a price change, aggregated across many markets Higher inflation means nominal incomes are higher so households can afford to spend more Higher domestic price levels cause exports to fall and imports to rise
Use the model of aggregate demand and short-run aggregate supply to explain how each of the following would affect real GDP and the price level in the short run. a reduction in government purchases an increase in nominal wages a major improvement in technology imposing in tariff barriers to imports
Given information: Aggregate Demand function/equation: P = 1400 - 0.4Yr Aggregate Supply function/question: P = 200 + 0.2Yr Full employment real GDP = Yf = $10,000 P = CPI, Yr = Real GDP
Only typed answer
The Recovery: Utilizing the Aggregate Demand/Aggregate Supply framework describe what has happened during the recovery from the recession from May 2020 (Q2 2020) to the present March 2022 has happened to real GDP since the end of the recession in Q2 of 2020? How about inflation and unemployment? How big is the gap between actual and potential real GDP? Describe the current state of the economy relative to real potential GDP (Links to an external site.).
In order to improve the living standards of the people in Philippines after the devastating typhoon Haiyan, the government decided to increase the labour wage per hour from AUD 17.50 to AUD 25.00. Also, Philippines experienced structural unemployment and frictional unemployment. The figure below indicates that the aggregate demand curve slopes left to right downwards. 1)Explain the factors that account for the shape of the Aggregate demand curve. Graph:
Which only affects short run aggregate supply? Choose all that apply. Group of answer choices Inflationary expectations Input prices Saving Technology Number of resources
Explain two ways in which a recession might raise the natural rate of unemployment (Macroeconomics field of question)
Is there a connection between the concepts of Long Run Aggregate Supply and the Natural Rate of Unemployment? Describe precisely how you think an economy would move towards long run equilibrium over time.

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