Question

Homework 3(1) (1) ICompatibility Mode] Mailings Reyiew View 2. Fiscal policy, Current macroeconomic situation in county X is shown below. Help this economy move to full employment at 10 trillion real GDP by answering the following questions re m y 130 120 110 a. Is country X facing a) Recessionary, or b) Inflationary gap? b. Country ? should use, a) expansionary, or b) contractionary Fiscal Policy. (1 polnt) point) (2 points) c. How would such policy work? d. Using the graph above, illustrate the macroeconomic situation in country X after the successful implementation of the policy: either AD or SRAS must shift.ints) Tracy Williams deposits $500 that was in her shoebox into a checking account at the local bank. The bank maintains a reserve ratio of 12%: a. If every time the bank makes a loan, the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan, by how much could the total money supply in the economy expand in response to Tracy's initial cash deposit of S500? 3 points) b. If every time the bank makes a loan, the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan but this time Tracy holds $150 in cash. (3 points)

Answer 1

Answer:

na Count o, poler ексе GDp

eal phy c) Exam ples

Price Level LRAS SRAS 120 110 New AD AD 10 Real GDP