Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 8, Problem 11E
To determine
(a)
To write:
The impact on
To determine
(b)
To write:
The impact on equilibrium price and real GDP level when there is increase in aggregate demand and decrease in aggregate supply.
To determine
(c)
To write:
The impact on equilibrium price and real GDP level when both aggregate demand and aggregate supply decrease.
To determine
(d)
To write:
The impact on equilibrium price and real GDP when there is a decrease in aggregate demand and increase in aggregate supply.
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In the week-4 materials, when deriving labour supply, we assumed that the
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Refer to the attached Wk 3 Graph for this assignment. The graph shows an increase in demand (shifting of the demand curve from D1 to D2). Choose an application or situation in the economy or a specific economic situation to describe this graph. Take into consideration the impact on quantity and price in your analysis.
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120-
118-
3. Use the AS-AD model to show the changes in aggregate demand and aggregate supply that occurred in
2016 and 2017 that brought the economy to its situation in mid-2017.
The graph shows the U.S. economy in the second quarter of 2016.
Draw and label the long-run aggregate supply curve in 2017.
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116-
114-
☑---
Price level (GDP deflator, 2009=100)
LAS 16
112-
110-
108-
106-
104-
102-
$16.7
100-
16.6
16.7 16.8 16.9 17.0
SAS 16
= SAS17
AD 16
17.1
17.2
17.3
Real GDP (trillions of 2009 dollars)
>>> Draw only the objects specified in the question.
LV
☑
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