sing the AD/AS Model, construct 2 graphs that show how higher rates of inflation can occur. Explain how discretionary fiscal or monetary policies can be used to bring down the inflation rate.

Elaborate on the impact of a central bank's reduction in interest rates using the AD-AS model.

Explain whether policy makers should be more concerned about the economy going into a recession or facing high inflation and why.

In the AD/AS model, a short-run inflationary boom can occur which returns to full employment in the long run because Select one: a. the inflation reduces profitability and output in the short run, but costs eventually fall and output is restored in the long run. b. the boom pushes up prices and salaries in the short run, reducing output, but companies attempt to restore profitability in the long run by pushing prices and salaries back down, which brings output back to full employment. c. aggregate supply is reduced in the short run, along with profit and output, but aggregate demand increases in the long run, along with profit and output, to bring the economy back to full employment. d. it takes a while for costs to catch up to inflation, so inflation boosts revenue, profit, and output in the short run, but the later-rising costs return profit and output to normal in the long run.

Is the way that NBER measures a recession fair and accurate? Please explain

Assume you are a member of the Federal Reserve, and you are adhering to the dual mandate. The economy reflects the following:  2018 CPI: 115  2019 CPI: 121.9  Potential GDP: $20 trillion  2019 Real GDP: $21 trillion  Natural rate of unemployment: 4.00%  2019 unemployment rate: 3.50%  Sketch a graph of the AD-AS Model. Be Sure to label all parts of the graph. Notate what type of gap you have and be sure to reflect it in your graph.  What monetary policy tools can be used to fix the gap identified in part A?  Assume you have adopted the Taylor Rule. Calculate the targeted federal funds rate if the equilibrium real federal funds rate and target rate of inflation is both 2%.  Graphical demonstrate the effects your recommended change of the Federal Funds Rate has on the reserves market, the money market, and the loanable funds market. Note that you should have three separate graphs, one for each market, but you do not have to worry about finding the quantity of reserves, money, or…

Use two graphs in the AD-AS framework to compare and contrast demand-pull and cost-push inflation. How do their causes differ? How do the outcomes (inflation, output, employment) differ?

In the Keynesian model, if there is a sudden rise in the aggregate demand curve, in the short run, it will cause a inflation b deflation c increase in output d a and c

If the Congress wants to increase the AD by $5 billion, how much should they increase the government spending.

Use the AD/AS framework to explain the impact of stabilization policy to correct for a negative output gap in the short-run.