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- What is the intermediate zone of the SRAS curve? Willariseinoutputbeaccompaniedbyariseorafallin the price level in this zone?There is currently a political and academic controversy whether or not stimulus packagesagainst the Covid-induced economic recession will cause inflation. Professor OlivierBlanchard has warned that the stimulus package of the US-administration may lead toinflation in the US. However, he does not see inflation dangers emanating from stimulusprograms in the Eurozone. The Next Generation EU program is not only considered to be a stimulus program but also tobe a growth program, which by spending on infrastructure and climate-related investmentsis expected to lead to an increase in potential output.Analyze in an AD-AS model the impact of economic growth on actual GDP and the pricelevel. Also elaborate on the role that an additional demand stimulus could play.In a closed economy, if the government wants to increase aggregate demand, it can O increase, increase O increase, decrease O decrease, increase O decrease, decrease government purchases or taxe The nation of Ectenia has long banned the export of its puka shells. A newly elected resident removes the export ban. This change in policy will cause the nation's currency to making the goods Ectenia exports expensive. O appreciate, less O appreciate, more O depreciate, less O depreciate, more
- 1- Based on the table, identify and explain the components of Aggregated Demand. Showthe variation in the Components of AD over four years which contributes the maximum tothe AD 2- From the table, relate Fiscal balance and Current account balance. Analyze why bothshow negative trend. 3- What is the trend in the fluctuation of OMR exchange rate against Dollar? What ismethod used for fixing exchange rate against $ and how is related to the trend shown in thetable 4- From the table we see that Trade balance is growing steadily but the Fiscal balanceshows negative trend. Are these related variables or independent variables. What does itindicate about the AD and AS of Oman’s economy? 5- Calculate the NON-WORKING POPULATION of Male and NON-WORKINGPOPULATION of Female of the country based on the population structure given above inthe chart. Consider the minimum working age is 20, explain working and non-workingpopulation and show calculation to demonstrate how you have reached the conclusion.…Which of these is an export for the UK economy? Selectați răspunsul corect: O a. Chinese tourists buying a cake in an English tea shop O b. UK car manufacturer buying Chinese steel O. An English lourist buying a colfee in Paris O d. An English football club buying a French footballer Strong inflationary expectations tend to discourage: Selectați răspunsul corect: O a. and harm collectors of gold coins. O b. saving and reduce inflationary pressure. curIsumplion and encouraye investmenl O d. saving and enhance infiationary pressure. O e. borrowing and encourage saving.Supply Demand Supply Demand QUANTITY (dolars) These fears would cause the demand for dollars to , and the sup ply of dollars to leading to In the euro/dollar exchange rate. PRICE OF DOLLARS (euros per dollar)
- Tools Consider two similar restaurants In dose proximity to each other on elther side of the U.S.-Mexico border. Suppose the dollar depreciates agalnst the peso. The following graph shows the supply and demand curves for meals at the restaurant on the Mexican side of the border. On the following graph, shtft erther the supply curve or the demand curve to represent the effect of the devaluation of the dollar agalnst the peso on the market for meals at the restaurant on the Mexican side of the border. (? O D D. QUANTITY (MEALS) The dollar devaluation harms PRICE (Pesos)There are the three reas0ns why aggregate demand is d0wnward sl0pe: real wealth effect, interest rate effect, exchange rate effect. In a case scenari0, the market saw an increase in c0nsumer spending when there is a b00m in ec0n0my. 0r the ec0n0mic crisis makes the public bit shy t0 buy 0r c0nsume any pr0duct. In the ab0ve tw0 situati0ns: the transfer payment d0es n0t make the part 0f g0vernment spending as the public will spend the m0ney given as self-security and unempl0yment. Exp0rt situati0n gets w0rse as the f0reigners are reluctant t0 buy expensive g00ds and the g0vernment will make s0me imp0rts. The b0rr0wing has bec0me easy and l0ans are issued at a cheaper rate t0 buy car. F0ll0wing the equati0n: Y = C + I + G + NX will the bel0w examples increase 0r decrease the aggregate demand in Indian? What will be the shift in p0siti0n f0r bel0w situati0ns? Widespread fear 0f recessi0n The appreciati0n in the Indian Rupee rate A b00m in the st0ck market An increase in transfer…There are the three reas0ns why aggregate demand is d0wnward sl0pe: real wealth effect, interest rate effect, exchange rate effect. In a case scenari0, the market saw an increase in c0nsumer spending when there is a b00m in ec0n0my. 0r the ec0n0mic crisis makes the public bit shy t0 buy 0r c0nsume any pr0duct. In the ab0ve tw0 situati0ns: the transfer payment d0es n0t make the part 0f g0vernment spending as the public will spend the m0ney given as self-security and unempl0yment. Exp0rt situati0n gets w0rse as the f0reigners are reluctant t0 buy expensive g00ds and the g0vernment will make s0me imp0rts. The b0rr0wing has bec0me easy and l0ans are issued at a cheaper rate t0 buy car. F0ll0wing the equati0n: Y = C + I + G + NX will the bel0w examples increase 0r decrease the aggregate demand in Indian? What will be the shift in p0siti0n f0r bel0w situati0ns? Widespread fear 0f recessi0n An increase in transfer payment A decrease in real interest rate in Pakistan
- There are the three reas0ns why aggregate demand is d0wnward sl0pe: real wealth effect, interest rate effect, exchange rate effect. In a case scenari0, the market saw an increase in c0nsumer spending when there is a b00m in ec0n0my. 0r the ec0n0mic crisis makes the public bit shy t0 buy 0r c0nsume any pr0duct. In the ab0ve tw0 situati0ns: the transfer payment d0es n0t make the part 0f g0vernment spending as the public will spend the m0ney given as self-security and unempl0yment. Exp0rt situati0n gets w0rse as the f0reigners are reluctant t0 buy expensive g00ds and the g0vernment will make s0me imp0rts. The b0rr0wing has bec0me easy and l0ans are issued at a cheaper rate t0 buy car. F0ll0wing the equati0n: Y = C + I + G + NX will the bel0w examples increase 0r decrease the aggregate demand in Indian? What will be the shift in p0siti0n f0r bel0w situati0ns? An increase in transfer payment A decrease in real interest rate in IndiaThe imaginary country of Harris Island has theaggregate supply and aggregate demand curves as Table24.3 shows. a. Plot the AD/AS diagram. Identify theequilibrium.b. Would you expect unemployment in thiseconomy to be relatively high or low?c. Would you expect concern about inflation in thiseconomy to be relatively high or low?d. Imagine that consumers begin to lose confidenceabout the state of the economy, and so ADbecomes lower by 275 at every price level.Identify the new aggregate equilibrium.e. How will the shift in AD affect the originaloutput, price level, and employment?Suppose there is a reduction in foreign output, Y*. This reduction in Y* will cause which of the following in the domestic country?a reduction in outputa reduction in consumptiona reduction in net exportsall of the abovenone of the above