8. Do the following events have their initial impact on aggregate demand, long run aggregatesupply, or short run aggregate supply? Do the curves shift to the right or to the left? Show,using a graph for each question.a. The new government in Canada increases income taxes.AD/AS/LRAS:Equilibrium Price:Equilibrium Quantity:b. There has been an increase in investment in postsecondary education in CanadaAD/AS/LRAS:Equilibrium Price:Equilibrium Quantity:c. Canada experiences downward pressure on nominal wages.AD/AS/LRAS:Equilibrium Price:,Equilibrium Quantity:96

Answered: Image /qna-images/answer/a154196f-5679-4cf8-86cc-6175710322d8.jpg

Answered: 8. Do the following events have their…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply

Section: Chapter Questions

Problem 11E

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Give typing answer with explanation and conclusion
Which of the graphs represents the state of the economy before this pronouncement? Graph A Graph B True or False: President Roosevelt was trying to decrease aggregate supply. O True False
In the following table, determine how each event affects the position of the aggregate demand curve.
Read the excerpt from the article “ATAR cut-offs to soar without more uni places to meet surging demand” from the Age, 17 June 2020 Use the demand/supply model to answer the questions below: (a) What does the article describe as the main changes to demand for and supply of university enrolments? (b) How would you predict these changes would affect the equilibrium price and quantity of domestic education? Does the article confirm your prediction? (c) Why are ATAR cut-offs predicted to increase? (d) Can you think of a solution to accommodate the change in domestic students’ demand? ATAR cut-offs to soar without more uni places to meet surging demand” from the Age, 17 June 2020 Australian Tertiary Admission Rank cut-offs for popular university courses are expected to soar next year unless surging demand from domestic students is met with an increase in places. Amid a weak job market and fewer traineeships due to the COVID-driven recession, universities warn students turned away from…
c. If aggregate demand shifts right, what is equilibrium output? d. if aggregate demand shifts left, what is equilibrium output?
Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table: Amount of Real GDP Demanded $ 600 $ 700 $ 800 $ 900 $1000 Price Amount of Real GDP Supplied $500 $1200 $400 $1000 $300 $200 $100 $ 800 $ 600 $ 400 a. Use the above data to graph the aggregate supply and aggregate demand curves. b. What are the equilibrium price and equilibrium level of real GDP? C. When this economy reaches its equilibrium GDP in this example, is it also operating at potential GDP? Explain why or why not.
1. This assignment further explores how demand and supply shocks effect the equilibrium price in a market. Imagine that the market for acoustic guitars is described by the following demand and supply curves: Qa = A - P Qs = B + SP a. Find the equilibrium price and quantity in the market. b. Form the inverse supply and demand functions and, Interpret the terms A and -B/8. f. Where A > 0, B 0. C. Explain why the emergence of a market for guitars requires the following: A> -B/8 > 0. d. Interpret the parameter & and, provide examples of when it is low or high. e. Suppose that master guitarist Julian Lage gives a performance that goes viral on YouTube. His amazing virtuosity sparks a massive increase in the demand for guitars. How would this shock be captured by the parameter A. Draw the supply and demand curves before and after the shock and show how the equilibrium changes. Based on your graph what, if anything, can you say about how the equilibrium price and quantity change? Now let's…
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Q.No.5. How the aggregate demand and changes in aggregate demand curves can be drawn graphically. Also illustrate the reasons of:A downward slope of aggregate demand curveB changes in aggregate demand
The accompanying table shows the aggregate demand and aggregate supply schedules for a hypothetical economy. Real Domestic Output Supplied (in Billions) $9,000 Price Level (Index Value) Real Domestic Output Demanded (in Billions) $3,000 4,000 5,000 350 8,000 5,000 7,000 300 250 6,000 200 7,000 150 5,000 8,000 100 4,000 a. What is the equilibrium price and output levels? b. If the price level is 350, what will happen in the economy? why? (.
In 2013, Prussia's aggregate demand curve was determined by the equation M + 1-4% A change in aggregate demand means that in 2014, Prussia's aggregate demand curve was determined by the equation Using this information, draw Prussia's old and new dynamic aggregate demand curves on the graph Which of the factors could have resulted in the change irn aggregate demand seen between 2013 and 2014? 13 AD 2013 an improvement in technology O an increase in imports O higher consumer confidence O a decrease in oil prices 12 AD 2014 10 8 5 4 3 2 4 -3 2 1 0 1 2 3 4 5 6 78 9 10 Real GDP growth rate
What would be the effect of an unexpected increase in the price of oil on a graph showing aggregate demand and short-run aggregate supply that is initially in equilibrium? The effect of an unexpected increase in the price of oil will be for the A. aggregate demand curve to shift down. B. aggregate demand curve to shift up. C. short-run aggregate supply curve to shift up. D. short-run aggregate supply curve to shift down. The new equilibrium will be where A. the new short-run aggregate supply curve interects the original aggregate demand curve. B. the original short-run aggregate supply curve interects the original aggregate demand curve. C. the new short-run aggregate supply curve interects the original short-run aggregate supply curve. D. the new short-run aggregate supply curve interects a new aggregate demand curve.

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