Assume that the Fed engages in a policy action that drives the economy above full employment. Use the AD/AS model to show the effects of this policy in both the short-run and in the long-run

If workers look around and see prices rising more quickly than they had planned for, what is the likely effect on their real wage? And what does that imply for income and employment? Again, use the AD/AS model's chart or equations.

An economist for the ruritanian ministry of economy recommends a tax to households of 20 billion. The country currently has a savings rate of 15%.  On a seperate sheet of paper. graph a notional AD/AS model and explain what happens in the long run .

Is ‘zero unemployment’ desirable? Explain Define the three ranges of the aggregate supply curve in the AD/AS framework.

Explain how unemployment and inflation impact the AD/AS model.

Consider the AD-AS model below. The economy is in long-run equilibrium at point in period 1. Consider an increase in government spending. If the public has rational expectations, the economy will move to point If the public has adaptive expectations, the economy will move to point . In period 3 the AS will pass through point In the long run the AS will move to point

Use the AD/AS framework to explain how the economy adjusts in the short run and the long run to each of the following (assuming that the economy starts at potential GDP with no  spare Capacity and a given price level): a) World energy prices rise and then settle at a new higher level, and this raises input prices for all domestic producers.  b) There is a one-off fall in export demand which stays at the new lower level.  c) The monetary policy makers lower their official interest rate and hold it at the new lower level.  d)The government raises its current spending and keeps it at the new level. e)Say what might have happened to the other components of aggregate demand when the economy has adjusted to the change In d) in the long run.

In an effort to boost output, the government passes a large fiscal stimulus that raises government spending by $1 trillion. Use the AD-AS framework to predict how prices and output change in the very short run, in the short run, in the medium run, and in the long run.

Need help with this. Please show how to adjust the AS and AD lines. Thanks!

During the Covid pandemic the Federal Government sent several checks to individuals and families. Why did it do this in terms of the aggregate supply and demand model framework?