Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 27, Problem 3SPA
To determine
Identify the impact of event in the aggregate
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Macroland is recognized as a high-income economy by the World Bank. The country of Macroland is now in a recession.
Using a correctly labeled graph of the long run aggregate supply, short run aggregate supply, and aggregate demand curves and show each of the following:
Current price level, labeled PL1
Current output, labelled Y1
Assume that Braveland, a major trading partner of Macroland, enters into a recession.
Explain the effect on Macroland exports to Braveland
On your graph in part (a) above, show the effect of the change identified in part (b) (i) above on real output in Macroland.
How would this change in real output in Macroland affect unemployment in Macroland?
Assume the recession in Braveland causes a decrease in the demand for Macroland dollars in the foreign exchange market. Braveland’s currency is the euro.
Explain whether the euro will appreciate, depreciate, or remain…
Macroland is recognized as a high-income economy by the World Bank. The country of Macroland is now in a recession.
Using a correctly labeled graph of the long run aggregate supply, short run aggregate supply, and aggregate demand curves and show each of the following:
Current price level, labeled PL1
Current output, labelled Y1
Assume that Braveland, a major trading partner of Macroland, enters into a recession.
Explain the effect on Macroland exports to Braveland
On your graph in part (a) above, show the effect of the change identified in part (b) (i) above on real output in Macroland.
How would this change in real output in Macroland affect unemployment in Macroland?
Assume the recession in Braveland causes a decrease in the demand for Macroland dollars in the foreign exchange market. Braveland’s currency is the euro.
Explain whether the euro will appreciate, depreciate, or remain…
Consider an oil-exporting economy in its long-run equilibrium. Which of the following explains the ultimate short-run
effect of a decrease in international oil price on the GDP of this economy?
The GDP will ultimately be at potential output.
The GDP will ultimately decrease.
The GDP will ultimately increase.
The effect on GDP will be ambiguous.
Chapter 27 Solutions
Macroeconomics
Ch. 27.1 - Prob. 1RQCh. 27.1 - Prob. 2RQCh. 27.1 - Prob. 3RQCh. 27.1 - Prob. 4RQCh. 27.2 - Prob. 1RQCh. 27.2 - Prob. 2RQCh. 27.2 - Prob. 3RQCh. 27.3 - Prob. 1RQCh. 27.3 - Prob. 2RQCh. 27.3 - Prob. 3RQ
Ch. 27.3 - Prob. 4RQCh. 27.4 - Prob. 1RQCh. 27.4 - Prob. 2RQCh. 27.4 - Prob. 3RQCh. 27 - Prob. 1SPACh. 27 - Prob. 2SPACh. 27 - Prob. 3SPACh. 27 - Prob. 4SPACh. 27 - Prob. 5SPACh. 27 - Prob. 6SPACh. 27 - Prob. 7SPACh. 27 - Prob. 8SPACh. 27 - Prob. 9SPACh. 27 - Prob. 10APACh. 27 - Prob. 11APACh. 27 - Prob. 12APACh. 27 - Prob. 13APACh. 27 - Prob. 14APACh. 27 - Prob. 15APACh. 27 - Prob. 16APACh. 27 - Prob. 17APACh. 27 - Prob. 18APACh. 27 - Prob. 19APACh. 27 - Prob. 20APACh. 27 - Prob. 21APACh. 27 - Prob. 22APACh. 27 - Prob. 23APACh. 27 - Prob. 24APACh. 27 - Prob. 25APACh. 27 - Prob. 26APA
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