Consider the figure below. The situation in Trombli is characterized by SRAS1 and AD1 when there is an increase in the money supply shifting the short-run aggregate supply curve to SRAS2. This will create __________ in the economy.   a. stagflationary pressure     b. a depression     c. inflationary pressure     d. recessionary pressure

1. Assume that the AD curve of the economy is given by Y = 15 – 100t + ñ, where m is a demand shock (animal spirits, government spending, or money supply). The AS curve is given by 1 TT = En + (Y – Ỹ) + ū, 50 where v is a supply shock (oil price, productivity). The variable n is the inflation rate, En is expected inflation rate, Y is output, and Y is long-run output. For numerical values, Y = 10, ñ = ū = 0. Answer each equation using both graphs and math. a. Plot the above AD-AS curves on the (Y, t) diagram. Describe the slopes of both the AD curve and the AS curve. b. If the economy is currently at its long-run trend, what should be the equilibrium output? What is the equilibrium inflation rate in this economy? What should be the equilibrium expected inflation rate in this economy? Assume that expected inflation rate is constant at 5 percent. What happens when the oil price increases by 5 percent (ū = 0.05)? What is the equilibrium level of output? C. What is the equilibrium level of…

5.5 and 5.6 please

Consider the figure to the right. If this country's government decides to increase its short-term spending, what happens to the short-run equilibrium price level, and why? Is this an example of demand-pull or cost-push inflation? Explain. 1.) Using the line drawing tool, draw either a new aggregate demand (AD) curve or a new short-run aggregate supply (AS) curve that shows the effects of temporary government spending increases. Properly label your line. 2.) Using the point drawing tool, indicate the economy's new short-run equilibrium price and level of real GDP. Label this point 'E₂.' Carefully follow the instructions above, and only draw the required objects. Price Level LRAS₁ Real GDP per Year (S trillions) AS₁ AD₁

37  In the Aggregate Supply/Aggregate Demand model, starting from long-run equilibrium, the long-run impact(s) of an increase in autonomous investment, compared to the original equilibrium, is(are): a.higher inflation. b.Higher output. c.lower inflation and lower output. d.lower inflation and higher output. e.higher inflation and higher output.

39 Which of the following will cause a shift in the short-run aggregate supply curve? a.An increase in government spending b.A change in expected inflation c.Unanticipated inflation d.A change in investment e.A decrease in government spending

Suppose country A has a central bank with full credibility, and country B has a central bank with no credibility. Assume that in 2020, both countries are hit with the same COVID-19 shock.If the both central banks announce an autonomous easing policy to reduce the unemployment rate,How does the credibility of each country’s central bank affect the speed of adjustment of the aggregate supply curve to policy announcements? How does this result affect output stability?

If the economy begins at an equilibrium at potential output, a negative aggregate demand shock has which of the following effects in the short-ru?   a. output and prices increase and unemployment falls below the natural rate b. output and prices increase and unemployment rises above the natural rate c. output and prices decrease and unemployment rises above the natural rate d. output and prices decrease and unemployment falls below the natural rate

8a. Assume that an economy is at equilibrium at its potential GDP at $10 trillion and aprice level of 100. What would be the short-run impact of a significant fall in consumer confidence about the future? Provide an AD/AS model to support your answer. b. What policy would you recommend to the chairperson of the Federal Reserve? Be specific. Show the effect of this policy on your graph part a. c. What are the major goals of the Fed's monetary policy?