• Equilibrium price level, labeled PL1 Equilibrium real output, labeled Y1 • Assume there is an increase in imports to Econland. Using your graph, show the effect of the increase in imports to the short-run equilibrium of Econland. Label the new level of output Y2 and the new price level PL2.

Q: List and describe the factors that determined the aggregate supply curve in the short and long run…

A: The short-run aggregate supply curve is an upward sloping curve which reflects the volume of…

Q: In the short run, the quantity of output supplied by firms can deviate from the natural level of…

A: Meaning of Gross Domestic Product (GDP):The term gross domestic product refers to the situation…

Q: Answer the following questions below a) What relationship does the aggregate demand curve show?…

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A:

Q: If the Federal Reserve wants to increase aggregate demand (i.e., spending growth) which variable…

A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…

Q: Assume that the United States economy is currently in a recession in a short-run equilibrium. Draw…

A: When the economy is in recession, real GDP is less than potential GDP.

Q: The graph shows a short-run aggregate supply curve. Please move the endpoints to turn the curve into…

A: ANS In the long run (LR) the amount of output (o/p) produced by an economy is at its potential…

Q: Starting from long run equilibrium,  use the basic aggregate demand and aggregate supply diagram to…

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Q: If the long run aggregate supply curve shifts, does the short run aggregate supply curve also have…

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Q: Then the world economy expands and the demand for Canadian-produced goods increases. Draw a curve…

A: Aggregate supply (AS) refers to the total quantity of goods and services that all producers in an…

Q: One of your classmates is convinced that the actual amount of output that corresponds to the…

A: The fixed LRAS corresponds to the the natural level of output, which the economy can produce at…

Q: Draw a graph, using the Aggregate Demand – Aggregate Supply curves, the result of a tax increase and…

A: Inflation is the process of abnormal increase in the general price level in the economy and the…

Q: Which of the following factors affect the Long-Run Aggregate Supply curve?  Choose all that apply.…

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Q: Which of the following factors affect the Long-Run Aggregate Supply curve? Choose all that apply.…

A: The link between an economy's overall output and the price level over the long run, assuming all…

Q: Assume that the United States economy is currently in a recession in a short-run equilibrium. Draw…

A: Assuming the economy of  United States is currently in recession in a short run equilibrium.…

Q: In the aggregate demand-supply model, a short-run equilibrium occurs at the combination of output…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.  Long…

Q: As a result of this change, the unemployment rate Use the sticky-wage theory of aggregate supply to…

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Q: Explain in detail why the aggregate short-run aggregate supply curve is upward sloping?

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Q: Suppose there is an international recession hits the US economy, what is the long-run equilibrium…

A: The explanation that at whatever point the economy enters a downturn, its long-run run aggregate…

Q: 6. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: The Chinese economy is at full employment when the global economy goes into recession. Explain the…

A: Global recession: It refers to the level of unemployment at the global level. The increase in the…

Q: Now adjust the graph to show the new long-run equilibrium. What causes the economy to move from its…

A: The AD-AS framework, also known as the Aggregate Demand-Aggregate Supply framework, is a…

Q: the long run aggregate supply curve is downward sloping, while the short run is vertical.    the…

A: Under the short run supply curve it is possible for the economy to produce more goods as it can…

Q: what impact would a change that shift an economys production possibilities curve outward have on the…

A: Outward production possibility curve would increase efficiency.

Q: What are the major factors causing a shift in aggregate demand (inward or outward)?  What are the…

A: Answer: Aggregate demand: aggregate demand refers to the total demand for goods and services…

Q: How does an increase in aggregate demand affect output, unemployment, and the price level in the…

A: AD(aggregate demand) curve, shifts to the right(increases) when its components rise. The components…

Q: Along the long-run aggregate supply curve, the price level with decreases in aggregate demand. A)…

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Q: Consider an economy that is initially in long-run equilibrium. Assume that the long- run aggregate…

A:

Q: Assume the economy of Germany is in a long run equilibrium with full employment. Draw a correctly…

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Q: Suppose the economy is in a situation of moderate unemployment, and then an exogenous increase of…

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Q: Using a well-labelled diagram, explain what happens to Aggregate demand of a country like Kenya when…

A: When price of petroleum products increases,aggregate demand would decrease.

Q: Which of the following are assumed to remain unchanged along a given short-run aggregate supply…

A: The aggregate supply curve depicts the quantity of real GDP that is supplied by the economy at…

Q: If a short-run equilibrium occurs at a level of output above the natural rate, then in the…

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Q: Answer both questions that need to be answered and the second question has a graph that’s needs to…

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Q: Changes in what four variables will shift the long run aggregate supply curve?

A: (Q) Changes in what four variables will shift the long run aggregate supply curve?

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A: The monetary value of all the goods and services that a country can create in a specific period of…