the the accompanying graph to answer the following questions Price Level 2 2 AG 12 14 16 18 20 Real GDP (in billions of dollars per year) The current macro equilibrium is when real GDP is $ b. The real GDP gap is S billion. The AD excess is $ billion Instructions: Enter your responses as a whole number a. Identify the macro equilibrium. Instructions: Use the tool provided 'Qg' to identify the current macro equilibrium on the graph. billion. Tools -9 GE billion. d identify the new equilibrium that would occur with appropriate fiscal policy. Instructions. Use the tool provided QF to identify the new equilibrium that would occur with appropriate fiscal policy This full employment GDP is $1

the the accompanying graph to answer the following questions Price Level 2 2 AG 12 14 16 18 20 Real GDP (in billions of dollars per year) The current macro equilibrium is when real GDP is $ b. The real GDP gap is S billion. The AD excess is $ billion Instructions: Enter your responses as a whole number a. Identify the macro equilibrium. Instructions: Use the tool provided 'Qg' to identify the current macro equilibrium on the graph. billion. Tools -9 GE billion. d identify the new equilibrium that would occur with appropriate fiscal policy. Instructions. Use the tool provided QF to identify the new equilibrium that would occur with appropriate fiscal policy This full employment GDP is $1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(Figure: Short- and Long-Run Equilibrlum I) Use Figure: Short- and Long-Run Equlibrium . If the economy le short-run maroeconomio wqbrum tE. appropriate polkcy to retum the economy to potential output would be atn): LRAS price l SRAS AD Real GDP potential output Oa decrease in taxes. Ob increase in government spending. Oc increase in transfer payments. Od. decrease in government spending.
Match each definition to the appropriate component of aggregate demand. Definition The sum of the expenditures of business firms on new plant, equipment, and software and of households on new homes The goods and services purchased by all levels of government The total amount spent by consumers on newly produced goods and services The difference between exports and imports ⒸNet exports O Government spending Consumer Expenditure Which of the following components represents the largest piece of aggregate demand? O Consumer expenditure O Investment spending O Which of the following components represents the smallest piece of aggregate demand? O Consumer expenditure O Government spending O Investment spending ONet exports Investment Spending Government Spending Net Exports O O O O
Oc
Figure 25-4 Potential 45 GDP 3 Real GDP In Figure 25-4, if the economy is in a recessionary gap, what must happen to reach potential GDP? The expenditure level must rise and'or the price level must rise. The expenditure level must fall and'or the price level must rise. The expenditure level must fall and'or the price level must fall. The expenditure level must rise and/or the price level must fall. Real Expenditures
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Draw diagram of a typical IS-LMmodel and indicate the changes in all the variables on the diagram should there be an increase in aggregate expenditure causing a shift of the IS curve to the right ( indicate the shift in the IS curve on your diagram) Indicate where macroequilibrium will be and properly label the axes on the diagram. Briefly explain what you understand such an IS-LM model is actually reflecting in terms of macroeconomics
Economics 3. Suppose the economy is in a recessionary gap.( the economy is not self-regulating and consider upward sloping SRAS ) If government spending increases by $30,000 but private investment reduces by $25,000 at the same time, will increase in government purchase lead the economy to long run equilibrium in goods and service market? Why or why not? Explain with AD-AS graph.
Price level (GDP price Index 2012-100) Pocential AS 130 GDP 120 110 100 90 AD 19.0 195 20.0 20.5 21.0 21.5 Real GDP (trillons of 2012 dollars) In the figure above, the economy is at an equilibrium with real GDP of $20 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the curve shifts because O a. aggregate supply; leftward; the money wage rate rises O b. aggregate supply; rightward; the money wage rate falls O c. aggregate demand; leftward; the money wage rate rises d. potential GDP; leftward; the money wage rate falls O e. aggregate demand; rightward; the money wage rate falls
2. How does the tax wedge influence potential GDP? please explain
b) The AD (Aggregate Demand) curve shows the relationship between general price levels and real GDP. i. State and briefly explain the components of aggregate demand (AD).ii. State four factors that would cause ● A fall in aggregate demand● An increase in aggregate demand
A Moving to another question will save this response. Quèstion 25 AS2 AS AS3 e3 P3 AD Q2 Q, Q3 Real Domestic Output Refer to the graph. If aggregate supply shifts from AS1 to AS2, what will happen to price level and real domestic output? 4 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Paragraph ニv A 12pt Open Sans,sa... v BIUS Price Level !!!
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