Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 15, Problem 2E
(a)
To determine
Impact of shock on labor market.
(b)
To determine
Impact of TFP shock when prices are rigid.
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Coronavirus pandemic and resultant shutdown measures to contain it have plunged the economies around the world including Singapore into severe contraction. Assuming Singaporean economy was in long run equilibrium in the aggregate demand and supply (AD-AS) model before the pandemic (and consequent shutdown) started, answer the questions below:
a) Assuming the contraction in the Singaporean economy is mainly driven by demand side factors, Show the short-run effects of this using the AD-AS model. Carefully explain in words (100 or less).
Graph
Explanation
b) Now assume that the contraction in the Singaporean economy is mainly driven by supply side factors, Show the short-run effects of this using the AD-AS model. Carefully explain in words (100 or less).
Graph
Explanation
[1] Make sure to label the variables represented on the X-axis and Y-axis of the graph clearly. Also mark the curves in the graphs clearly…
Coronavirus pandemic and resultant shutdown measures to contain it have plunged the economies around the world including Singapore into severe contraction. Assuming Singaporean economy was in long run equilibrium in the aggregate demand and supply (AD-AS) model before the pandemic (and consequent shutdown) started, answer the questions below:
a) Assuming the contraction in the Singaporean economy is mainly driven by demand side factors, Show the short-run effects of this using the AD-AS model. Carefully explain in words (100 or less).
Graph
Explanation
Coronavirus pandemic and resultant shutdown measures to contain it have plunged the economies around the world including Singapore into severe contraction. Assuming Singaporean economy was in long run equilibrium in the aggregate demand and supply (AD-AS) model before the pandemic (and consequent shutdown) started, answer the questions below:
a) Assuming the contraction in the Singaporean economy is mainly driven by demand side factors, Show the short-run effects of this using the AD-AS model. Carefully explain in words (100 or less) and using a graph.
b) Now assume that the contraction in the Singaporean economy is mainly driven by supply side factors, Show the short-run effects of this using the AD-AS model. Carefully explain in words (100 or less) and using a graph.
Chapter 15 Solutions
Macroeconomics (Fourth Edition)
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- ASAP Regardless of many assumptions, an equilibrium business-cycle model can go a long way in matching actual economic fluctuations for many macroeconomic variables. Please write down examples and explain its possible reasonings?arrow_forwardCovid-19 global economic pandemic has negatively affected economies as a whole at the global,national and regional levels. The novel effects of the fluidity of Covid-19 appears to continue to have negative impacts on the macro business model as the global recession seems to be inevitable.You are working as a macroeconomist in economic affairs in your local country, and you are tasked with analyzing the impact of Covid-19 on the economy and you are required to prepare notes on what specific government policies can be implemented as a stimulus package to jump-start the economy savings and investment market. The team meeting will be held in 3 days from the date of the assignment and because of limitation of time the Chief economist has given you the following guidelines: Help me in identifying four (4) key macroeconomic issues from the impact of Covid-19, For each issue identifed above explain in detail what specific government policy/ies would you implementarrow_forwardCovid-19 global economic pandemic has negatively affected economies as a whole at the global, national and regional levels. The novel effects of the fluidity of Covid-19 appears to continue to have negative impacts on the macro business model as the global recession seems to be inevitable. You are working as a macroeconomist in economic affairs in your local country, and you are tasked with analyzing the impact of Post-Covid-19 on the economy and you are required to prepare notes on what specific government policies can be implemented as a stimulus package to jump-start the economy savings and investment market. The team meeting will be held in 3 days from the date of the assignment and because of limitation of time the Chief economist has given you the following guidelines: (a) You are required to identify four (4) key macroeconomic issues from the impact of Covid-19, (b) For each issue identify in (a) explain in detail what specific government Post-Covid-19 policy/ies would you…arrow_forward
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