Worksheet 5: Aggregate Supply and Aggregate DemandName:Complete the questions below. Be sure to show your work. Upload this worksheet to Moodle.Consider the following Aggregate Supply and Aggregate Demand curves.1.PDraw10864269%20 40G93AS/ADLRAS60 80SRASAD100 120GDP3. Does this graph represent a Recessionary Gap, an Inflationary Gap, or an economy that isoperating at its potential output? Explain.the graph.Pregate Demand?

The desire of an individual to buy a product according to the willingness and ability to purchase a…

Worksheet 5: Aggregate Supply and Aggregate Demand Name: Complete the questions below. Be sure to show your work. Upload this worksheet to Moodle. Consider the following Aggregate Supply and Aggregate Demand curves. 1. P Draw - 10 8 6 4 2 AS/AD LRAS SRAS AD 20 40 60 80 100 120 GDP 3. Does this graph represent a Recessionary Gap, an Inflationary Gap, or an economy that is operating at its potential output? Explain. the graph. ****regate Demand?

Worksheet 5: Aggregate Supply and Aggregate Demand Name: Complete the questions below. Be sure to show your work. Upload this worksheet to Moodle. Consider the following Aggregate Supply and Aggregate Demand curves. 1. P Draw - 10 8 6 4 2 AS/AD LRAS SRAS AD 20 40 60 80 100 120 GDP 3. Does this graph represent a Recessionary Gap, an Inflationary Gap, or an economy that is operating at its potential output? Explain. the graph. ****regate Demand?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply

Section: Chapter Questions

Problem 18E

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ECN201_N40_SP24: Workshee X bads/Worksheet%205-%20AS%20and%20AD%20(2).pdf P Worksheet 5: Aggregate Supply and Aggregate Demand Name: Complete the questions below. Be sure to show your work. Upload this worksheet to Moodle. Consider the following Aggregate Supply and Aggregate Demand curves. 10 8 6 Microsoft word 4 2 1 / 1 | - 100% + 20 40 1. What is the ACTUAL level of GDP? AS/AD 2. What is the equilibrium price level? m LRAS 60 80 SRAS AD 100 120 GDP tvilli A AL
draw a AD/ AS diagram to show the effect of raising and increasing intrest, icome tax, corporate tax and government expenditure versus decreasing intrest, income tax, corporate tax and government expenditure.
Economic On April 27, 2023, the U.S. Bureau of Economic Analysis (BEA) released the data on GDP growth for the US economy for the first quarter of 2023 and revealed that the economy grew sluggishly by only 1.1 percent. Based on this report, suppose the U.S. consumers and businesses start to become pessimistic about the direction of the economy and eventually cut consumer and business spending, analyze using the IS-LM and AD-AS frameworks the short and long-run effects of such a shock on prices, output, and real interest rate.
Assume an economy operates in the intermediate range of its aggregate supplycurve. For each of the following changes in conditions, state the direction of theeffect on: aggregate demand, aggregate supply, price level, real GDP.(a) A decrease in government expenditure in infrastructure(b) A severe recession occurs in a country which has been a major importer of thenation’s exports.(c) The federal government increases business taxes with diagram
Worksheet 5: Aggregate Supply and Aggregate Demand Complete the questions below. Be sure to show your work. Upload this worksheet to Moodle. Consider the following Aggregate Supply and Aggregate Demand curves. 2. 3. D P 10 8 6 4 2 20 AS/AD 40 LRAS 60 80 140 SRAS AD Name: 100 120 GDP 4. Suppose the government increased spending (G). What would happen to Aggregate Demand? Draw the resulting curve, and mark a new equilibrium on the graph.
The table below shows aggregate demand and aggregate supply schedules in a hypothetical economy, Acadia. Aggregate Demand and Aggregate Supply Schedules for Acadia Real GDP PADO) (AD1) (ASo) (AS1) Price Level (2012 = 100) (2012 $ billions) 140 150 200 230 280 130 170 220 220 270 120 190 240 190 240 110 210 260 160 210 100 230 280 120 170 a. Draw a graph showing Acadia's ADO, AD1, ASo and AS1. Using the tools given below plot only the endpoints of the demand curves ADo and AD1. Plot all 5 points for each supply curve, ASo and AS1. ces Aggregate Demand and Supply for a hypothetical economy, Acadia 150 Tools 140 ADO AD1 130 120 ASo AS1 110 100 90 100 150 200 250 300 Real GDP (2012 $ billion) Price Level (GDP deflator 2012 = 100)
Suppose you are given the following information about an economy: Short run Aggregate Supply: SRAS = Y = 5000r+ 14,400 Long run Aggregate Supply: Aggregate Demand: Investment Spending: Consumption Spending: Government Spending: Net Exports (eX – iM): LRAS = Y* = 25,000 AD = Y=C+I+G+NX_ I = 4000 – 250r C = 1000 +0.75(Y – T) G = 2000 NX = 500 Taxes – Transfers: T = 2400 Monetary Policy: Money Demand: Money Market equilibrium: Fisher equation: where i is the nominal interest rate (i.e. when the interest rate is 7%, it means i= 7) r = 2 n м 3 20,000- 2000i M$ = MD i = r+T e. Find the short run equilibrium level of real GDP (Y), and inflation rate (t), in the short run. What is the output gap in the economy? Is it an expansionary or recessionary gap?
How is recession illustrated in an AD/AS model?
What is the economic reason why the SRAS curve slopes up?
Name some factors that could cause the SRAS curve to shift, and say whether they would shift SRAS to the right or to the left.
On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because the product in question is now relatively less expensive than substitute products. Explain why aggregate demand does not increase for the same reason in response to a decrease in the aggregate price level. In other words, what causes total spending to increase if it is not because goods are now cheaper?
If the economy is operating In the Keynesian zone of the SRAS curve and aggregate demand falls, what is likely to happen to real GDP?