Question

Imagine that in the year 2022, China's economy slows significantly, causing a decrease in demand for US exports. Use the AD/AS model to explain the likely short run impacts on U.S. GDP and the aggregate price level. What do you anticipate will happen to U.S. consumption expenditure and U.S. employment? Please explain your reasoning for each of your predictions and show graphically as appropriate. AD/AS model analysis Criteria Ratings Pts Criterion 1 4.0pts 0.0 pts 3.0 pts 20pts Distinguished Proficient Developing Explain the likely short run impacts on U.S. GDP using the AD/AS No 4.0 pts model evident Criterion 2 4.0 pts 3.0 pts 2.0pts 0.0 pts Explain the likely aggregate price level use the AD/AS model Distinguished Proficient Developing No 4.0 pts evident Criterion 3 5.0pts Distinguished Proficient 4.0 pts 2.0pts 0.0 pts Create a graphic to illustrate the anticipated result to U.S. consumption expenditure and U.S. employment Developing No 5.0pts evident Criterion 4 0.0 pts 5.0pts 40 pts 2.0pts Explain the anticipated result to U.S.consumption expenditure and U.S. employment Distinguished Proficient Developing No 5.0pts marks Criterion 5 20pts 0.0 pts Articulation of response (citations, grammar, spelling, syntax, or Full marks No marks 2.0 pts organization that negatively impact readability and articulation of main ideas) Show trnceribed immage tevt

Answer 1

Answer: If In year 2028, chinas economy slows significantly, causing a decrease in demand for us exports. • Using Aplas model explanation of short sun impacts on US Gop and aggregate price level is: → Ax in 2022, chinas economy slows down and demand decreases for us exports : . In short son aggregate demand are shifts left side from ADI AD as shown in graph below. Graphi , LRAS SRAS ER ADI CO

This will apply pressure on price level to reduce as the supply is also decreasing output decreases from oi to or due to lower demand and new short run equilibrium shifts, from El to. Ez · Due to economic slow down , demand decreases, so onemployment will increase This will effect both countries from all thele Conde ting, che anticipate decrease in US consumption expenditure.. - Any change in macro economic variables like the expenditure, Consumption, export - import, Government investments will lead shift in AD/As came - o -