I Graphical 1. Economic analysis: Please mark the original AD as AD, and AS as AS. Show (wherever applicable) the shift and mark the new AD as AD, and/or AS as AS₁. (a) Short-run impact of a positive wealth shock (b) Short-run impact of an increase in input costs [No need to show long-run AS curve] [No need to show long-run AS curvel

Question 6: (a) What is 'Business Cycle'? 0 (b) What is the definition of: leading indicator, coincident indicator, and lagging indicator? Provide 2 examples of each leading, coincident and lagging indicatoke Click or tap here to enter text. (c) Define the three ranges of the aggregate supply curve in the AD/AS framework. Click or tap here to enter text.

52. The main properties of a Neoclassical aggregate production function are ________ when all factors are increased proportionally and ________ when any one factor is increased on its own.     constant returns to scale; diminishing marginal returns     decreasing returns to scale; diminishing marginal returns     increasing returns to scale; increasing marginal returns     increasing returns to scale; diminishing marginal returns     constant returns to scale; constant marginal returns

On the graph, label your starting AD line as AD 2019.  Draw a new AD line showing the change to AD due to the pandemic. Label your starting SRAS line as SRAS 2019.  Draw a new SRAS line showing the change to supply due to the pandemic.Label the new short-run equilibrium RGDP and Price Level.   Does output (i.e. RGDP) increase or decrease in your model? Does the price level increase or decrease in your model? According to the AD-AS model when RGDP falls the unemployment rises and vice versa.  Does your graph indicate an increase or decrease in the unemployment rate

28. Assuming Aggregate Demand and Aggregate Supply are initially at ADo and ASo, and AD1 and AS1 represent changes, which of the above graphs depict the economy's self-correcting mechanism at work? a) Figures A & B b) Figures A & C c) Figures C & D d) Figures B & D

Question 1. In the AD-AS model with an upward-sloping AS curve, a decrease in oil prices will: A. increase prices and output. B. increase prices and decrease output. C. decrease prices and increase output. D. decrease prices and output. E. decrease prices but have no effect on output.   Question 2 Improvements in the matching efficiency in the labour market always lead to: A. lower unemployment rate. B. lower vacancy rate. C. higher vacancy rate. D. no effect on the vacancy rate. E. Both A and D.

4. A large decline in government purchases: Suppose there is a large temporary decline in government purchases in the economy, financed by an unspecified decline in future lump sum taxes. (a) Analyze the effect of the shock in the labor market diagram of a standard DSGE model (with no sticky prices or wages). What is the effect on the real wage and employment in the short run? (b) How would your answer change if there are sticky prices? (c) Discuss how your answer relates to the impulse response functions shown in Figure 15.12. (Hint: That figure is for an increase in government pur- chases, so you need to switch the sign of the effects in that figure.) FIGURE 15.12 The Dynamic Effects of a Shock to Government Purchases Percent change Percent change 1 GDP 0.5 0.5- 0 Consumption -0.5 15 20 10 Quarters after the shock 0 -0.5- 5 Percent change 0.7 0.6 0.5- 0.4- 0.3- 0.2 0.1 0 0 5 Hours worked 20 10 15 Quarters after the shock 5 Percent change 0.4 0.3- 0.2 0.1 0 0 5 10 15 20 Quarters after…

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Hello, I'm trying to figure out how this person got this answer. I get stuck at the line after the fourth equal sign. Could you please explain in detail how this was simplified? Thank you.

Solutions for c,d and e