Sort the following shocks into aggregate supply or aggregate demand shocks. Remember that "shocks” include both good and bad events. No need to motivate your answer. Fall in the price of oil A rise in consumer optimism A hurricane that destroys factories Good weather that creates a bumper crop A rise in sales taxes Foreigners buy fewer goods Fear New inventions occur at a faster pace A faster money growth rate

Suppose the GDP of Imperial Rome is described by the Solow Model. Output is a function of productivity, physical capital, and human capital (which accumulates and depreciates in a similar manner as physical capital). In the year 600 Rome's economy is in steady state. Classify each of the following shocks based on its effect on GDP. There are 3 options for each shock: 1. An immediate impact, but no long-term impact 2. No immediate impact, only a long-term impact 3. Both an immediate and long-term impact Assume the shock happens at the beginning of year 600, after K600 is determined but before any production. Assume "immediate impact" means an impact on Y600- The discovery of steel, which allows Rome to build machinery with a lower rate of depreciation [Choose] The blessing of the Goddess Hera, which [Choose] increases Rome's stock of human capital An invasion of Vandals who destroy half of Rome's physical capital [Choose] The opening of a trade route to Brittania, which increases…

Which of the following describes two ways to show real economic growth in a graphical model?   A shift to the right of the long-run Phillips curve and a shift to the right of the long-run aggregate supply curve. A shift to the right of the long-run aggregate supply curve, and a shift to the right of the aggregate demand curve. A movement from inside the PPC to an efficient point on the frontier line, and a right shift of the long-run aggregate supply curve. An outward shift of the production possibilities curve, and a right shift of the aggregate demand curve. None of the answers are correct.

Consider the following shocks: A. The government cuts the personal income tax B. Firms expect a recession in the coming years C. A country the US trades with experiences an economic slowdown D. The government cuts unemployment benefits E. The central bank decides to cut the money supply F. US dollar appreciates against other currencies G. The government cuts its spending on infrastructure H. The government of a country the US trades with introduces tariffs on US-produced goods I. There is a stock market crash. For each shock: 1) explain which component of aggregate expenditure would the shock affect and why; 2) Illustrate in the (Y, P) coordinates how the shock would affect the position of the AD curve 3) explain how the shock would affect equilibrium output and the price level in the economy according to the classical school of economic thought (aka the long run approach)

Parts A-D. I don't need it drawn out, just explained to me so I can go further with the graph.

are the likely results of an adverse supply shock Increases in both prices and output A decrease in prices and an increase in output Decreases in both prices and output An increase in prices and a decrease in output

Which of the following events would not involve a supply shock that would shift the aggregate supply curve?   (i) The Cosatu union disintegrates and the minimum wage is abolished. (ii) African bank plc’s bad debt creates a financial crisis and that leads to reduction in money supply. (iii) 2016 drought destroys half of the crops farmed. (iv) A tax on sugar is levied on companies that produce sugary beverages. Group of answer choices     Only ii and iv are correct.   Only ii is correct.   Only iii and iv are correct.   Only i and ii are correct.

A broader definition of macroeconomics and its relationship with the level of production, unemployment and inflation of a country.

A coincident indicator will change before a recession begins. True or False And why

Short-run economic growth comes from   expanding the production possibilities curve outward. a rightward shift of the aggregate supply or aggregate demand curve. increased capacity utilization or more efficient use of existing resources. a decrease in population which increases output per person. All of the answers are correct.