suppose that at a price index of 154 the quantity demand of u.s. real GDP is 10.0 trillion worth of goods. do these data represent aggregate demand or point on an aggregate demand curve? explain your answer?

Suppose the people of Canada has reduced their spending on goods and services from the United States.   What will be the effect on real GDP and the price level in the short run? In the long run? Show your results graphically.

Describe how different parts of the economy may have experienced shifts and changes in supply and demand. Provide at least 4 examples.

Question: The attached picture shows the aggregate demand/aggregate supply situation in the U.S.    What is the value of actual GDP? What is the value of the GDP deflator?  Assume that people and businesses become pessimistic about the future of the economy; how will this affect the graph above in the short run? (i.e., which curve(s) will shift, and in which direction?)   After the short-run event in part b, what will happen to actual GDP? What will happen to the price level?   After the short-run event in part b, describe how the economy is doing in terms of the business cycle (i.e., recession, full employment, expansion).   What long-run adjustments will be made in this economy as a result of the short-run changes in part c? How will the curve(s) shift in response to these long-run adjustments?   After the long-run adjustments in part e, describe how the economy is doing in terms of the business cycle (i.e., recession, full employment, expansion).

During the last two years there has been a depletion of groundwater in the nation because of a severe drought in the country. 1. Which of the two graphs above is correct? Explain why. 2. What happened to real GDP in the selected graph? Why? 3. What happened to the price level in the selected graph? Why? 4. What happened to aggregate demand and aggregate supply Why?

To determine the price level and aggregate output, the aggregate demand and aggregate supply must

# I am guessing, the price of imports will decrease is wrong.

There are three distinct reasons why the aggregate demand curve slopes downward.  List and discuss each reason.   The aggregate supply curve can be upward sloping or vertical depending upon the time frame we are considering (short-run or long-run).  In what time frame is the aggregate supply curve vertical?  Why?  In what time frame is the aggregate supply curve upward sloping? Why?

Question The following events shift either aggregated demand, aggregated supply, both or neither in the UK. Using a diagram, illustrate the effects of the events on the economy. In particular, explain the effect of each event on price level, real GDP, and equilibrium in the economy. D) The government adopts policies that reduce taxes on producers E) The economy in a neighbouring country is booming. Many people (and their families) emigrate there in search of jobs and a better life.

QUESTION 1 Aggregate Demand (AD) Is drawn with price level, average price for everything in the economy relative to the base year price, (not the dollar price) on the vertical axis and Real GDP demanded on the horizontal axis. Use the numbers from the following table and calculate the Real GDP Demanded using expenditure approach of GDP, and plot all the points on the Aggregate Demand. Connect all the points to draw the aggregate demand. [Review Chapter 5 powerpoints, textbook and Internet source to find what numbers have tolbe added to get each of the points In the Aggregate Demand curve.] (国 Real GDP Demanded (AD): C+l+G+ (X-M) Real GDP Supplied: Ageregate Supply (AS) $680 Price Level 110 $400 $185 $150 $55 $50 115 390 180 150 50 50 720 120 380 175 150 45 50 750 125 370 170 150 40 50 780 130 360 165 150 35 50 810 8.