Homework Answers
Answer
Option 2
Price level =200
Output=600
Price level =100
Output=800
change in output =800-600=200
the putput increases by $200
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Use the following graph, which shows an aggregate demand curve, to answer the next question, 250...
is this correct? please help The graph shows the aggregate supply curve and the aggregate demand...
is this correct? please help
The graph shows the aggregate supply curve and the aggregate demand curve for an economy. Price level (GDP price index, 2009=100) Draw an aggregate demand curve that shows the effect of a $100 billion decrease in government expenditure and a $100 billion decrease in taxes occurring simultaneously. Label it AD. 0 0 ASO The balanced budget multiplier O A. is a negative number OB. equals zero O C. is a positive number OD. is sometimes...
Question 21 1 pts Use the following table which shows the aggregate demand and aggregate supply...
Question 21 1 pts Use the following table which shows the aggregate demand and aggregate supply schedule for a hypothetical economy to answer the next question. Real Domestic Output Demanded Price Level Real Domestic Output Supplied (in billions) (index value) (in billions) $3,000 350 $9,000 4,000 300 8,000 5,000 250 7,000 6,000 200 6,000 7,000 150 5,000 8,000 100 4,000 At the price level of 150, there will be a general surplus in the economy, and output supplied will decrease...
The following graph shows the aggregate demand (AD) curve in a hypothetical economy. At point A,...
The following graph shows the aggregate demand (AD) curve in a hypothetical economy. At point A, the price level is 120, and the quantity of output demanded is $500 billion. Moving up along the aggregate demand curve from point A to point B, the price level rises to 140, and the quantity of output demanded falls to $300 billion. As the price level rises, the purchasing power of households' real wealth will _______ causing the quantity of output demanded to _______...
5. (10 Marks) The money market for the economy of Charlton is depicted in the graph...
5. (10 Marks) The money market for the economy of Charlton is depicted in the graph given below (all dollar figures are in billions): Interest rate 50 100 150 200 250 300 Quantity of money The investment demand curve is shown in the following figure. 250 50 100 150 200 Quantity of investment Suppose that the central bank of Charlton wishes to use contractionary monetary policy and decreases the money supply by $50 billion. a. Draw the new money supply...
endrid-side Equiorum: Unemployment or Inflation? 1. Aggregate expenditure and income The following table shows consumption (C),...
endrid-side Equiorum: Unemployment or Inflation? 1. Aggregate expenditure and income The following table shows consumption (C), investment (1), government purchases (G), and net exports (X-IM) in a hypothetical economy for various levels of real GDP (Y). Assume that the price level remains unchanged at all levels of income. All figures are in billions of dollars. 550 Compute total expenditure for each income level, and fill in the last column in the following table. Y c 1 G X -IM Total...
1. Suppose that the aggregate demand supply schedules for a hypothetical economy are shown as below:...
1. Suppose that the aggregate demand supply schedules for a hypothetical economy are shown as below: AD (in billion ) Price level index) SRAS (in billion $ $100 300 $450 200 250 400 300 200 300 400 150 200 500 100 100 a. Use these sets of data to graph the aggregate demand and aggregate supply curves. What is the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Is the equilibrium real output also...
The table shows Aggregate Demand and Short-run Aggregate Supply for a country in which Potential GDP...
The table shows Aggregate Demand and Short-run Aggregate Supply for a country in which Potential GDP is $1,050 billion Price Level Real GDP Demanded Real GDP Supplied 100 $1,150 $1,050 110 $1,100 $1,100 120 $1,050 $1,150 130 $1,000 $1,200 140 $950 $1,250 150 $900 $1,300 160 $850 $1,350 Graph the Aggregate Demand and Short-run Aggregate Supply curves Does this country have an inflationary gap or a recessionary gap? What is the magnitude of the gap as a % of Potential...
The graph below depicts an economy where a decline in aggregate demand has caused a recession....
The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by increasing government purchases to reduce the burden of this recession. Fiscal Policy 180 LRAS AS 160 140 120 100 Price Level 80 60 40 AD 20 AD 0 100 200 300 400 500 600 700 800 900 Real GDP (billions of dollars) Instructions: Enter your answers as a whole number. a. How much does aggregate...
In the graph, the initial aggregate supply curve is AS and the initial aggregate demand curve...
In the graph, the initial aggregate supply curve is AS and the initial aggregate demand curve is ADo Some events that could have changed aggregate demand from AD, to AD are O A. a fall in the exchange rate or Price level 0 AS AS an increase in expected future inflation O B. a decrease in the money wage rate or 105 10 an increase in potential GDP ( 100 C. a decrease in expected future income or a decrease...
1. Aggregate expenditure and income The following table shows consumption (C), investment (I), government purchases (G),...
1. Aggregate expenditure and income The following table shows consumption (C), investment (I), government purchases (G), and net exports (X−IM) in a hypothetical economy for various levels of real GDP (Y). Assume that the price level remains unchanged at all levels of income. All figures are in billions of dollars. Compute total expenditure for each income level, and fill in the last column in the following table. Y C I G X−IM Total Expenditure 500 300 150 200 -100 600...
is this correct? please help
The graph shows the aggregate supply curve and the aggregate demand curve for an economy. Price level (GDP price index, 2009=100) Draw an aggregate demand curve that shows the effect of a $100 billion decrease in government expenditure and a $100 billion decrease in taxes occurring simultaneously. Label it AD. 0 0 ASO The balanced budget multiplier O A. is a negative number OB. equals zero O C. is a positive number OD. is sometimes...
Question 21 1 pts Use the following table which shows the aggregate demand and aggregate supply schedule for a hypothetical economy to answer the next question. Real Domestic Output Demanded Price Level Real Domestic Output Supplied (in billions) (index value) (in billions) $3,000 350 $9,000 4,000 300 8,000 5,000 250 7,000 6,000 200 6,000 7,000 150 5,000 8,000 100 4,000 At the price level of 150, there will be a general surplus in the economy, and output supplied will decrease...
5. (10 Marks) The money market for the economy of Charlton is depicted in the graph given below (all dollar figures are in billions): Interest rate 50 100 150 200 250 300 Quantity of money The investment demand curve is shown in the following figure. 250 50 100 150 200 Quantity of investment Suppose that the central bank of Charlton wishes to use contractionary monetary policy and decreases the money supply by $50 billion. a. Draw the new money supply...
endrid-side Equiorum: Unemployment or Inflation? 1. Aggregate expenditure and income The following table shows consumption (C), investment (1), government purchases (G), and net exports (X-IM) in a hypothetical economy for various levels of real GDP (Y). Assume that the price level remains unchanged at all levels of income. All figures are in billions of dollars. 550 Compute total expenditure for each income level, and fill in the last column in the following table. Y c 1 G X -IM Total...
1. Suppose that the aggregate demand supply schedules for a hypothetical economy are shown as below: AD (in billion ) Price level index) SRAS (in billion $ $100 300 $450 200 250 400 300 200 300 400 150 200 500 100 100 a. Use these sets of data to graph the aggregate demand and aggregate supply curves. What is the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Is the equilibrium real output also...
The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by increasing government purchases to reduce the burden of this recession. Fiscal Policy 180 LRAS AS 160 140 120 100 Price Level 80 60 40 AD 20 AD 0 100 200 300 400 500 600 700 800 900 Real GDP (billions of dollars) Instructions: Enter your answers as a whole number. a. How much does aggregate...
In the graph, the initial aggregate supply curve is AS and the initial aggregate demand curve is ADo Some events that could have changed aggregate demand from AD, to AD are O A. a fall in the exchange rate or Price level 0 AS AS an increase in expected future inflation O B. a decrease in the money wage rate or 105 10 an increase in potential GDP ( 100 C. a decrease in expected future income or a decrease...
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