Question

l in in the following table shows what the situation will be in 2015 if the Price Level (CP) GDP Real GDP Price Level 2014 $1.55 trillion $1.55 trilion 2015 $1.61 trillion $1.55 trillion 124 Draw an aggregate demand and aggregate supply graph to illustrate the effects of Parliament's policy Assume that policy does not affect LRAS 1.) Use the line drawing tool to draw the LRAS curves for 2014 and 2015. Respectively label these curves LRAS2014 and 'LRAS2015 2.) Use the line drawing tool to draw the SRAS curves for 2014 and 2015. Respectively label these curves 3.) Use the line drawing tool to draw the AD curve for 2014. Label this curve 'AD2014 15415s 158 140 142 164 4.) Use the line drawing tool to draw the AD curve for 2015, with anqt without fiscal policy action. Respectively label these curves 'AD2015P and 'AD 2015N The hypothetical information in the following table shows what the situation will be in 2015 if the Price Level (CPI) Potential Real Real GDP Price Leve Year 2014 $1.55 trillion $1.55 trillion 2015 $1.61 trillion $1.55 trillion24 GDP 110.0 LRAS2014 and LRAS201 2.) Use the line drawing tool to draw the SRAS curves for 2014 and 2015. Respectively label these curves and 'SRAS2015 SRAS2014 3.) Use the line drawing tool to draw the AD curve for 2014. Label this curve AD2014 4.) Use the line drawing tool to draw the AD curve for 2015, with and without fiscal policy action. Respectively label these curves 'AD2015P and 'AD 2015N 52 1.54 1.56 1.58 1.0 5.) Use the point drawing tool to identify the equilibrium Real GDP (trilions of dollars) policy. Respectively label these points 'ep and Carefully follow the instructions above, and only draw the required objects.

Answer 1

hypothetical information in the following table shows what the situation will be in 2015 if the government does not use fiscal nolicy Price Level RAS1A IRAS1! Year Potential Real 2014 $1.55 trillion $1.55 trillion 118 Real GDP Price Level GDP SRAS15 10.0 2015 $1.61 trilion $1.55 tillion 1124 SRAS14 c. Draw an aggregate demand and aggregate supply graph to illustrate the effects of Parliament's policy Assume that policy does not affect LRAS 1.) Use the line drawing tool to draw the LRAS curves for 2014 and 2015. Respectively label these curves AD1 LRAS2014 and 'LRAS2015 5P AD15N 2.) Use the line drawing tool to draw the SRAS curves for 2014 and 2015. Respectively label these curves SRAS2014' and 'SRAS2015 3.) Use the line drewing tool to draw the AD curve for 2014. Label this curve 'AD2014 4.) Use the line drawing tool to draw the AD curve for 2015, with andt without fiscal policy action. AD14 152 1.54-15618 160 -182 1.64 Real GDP (trillions of doars) Respectively label these curves 'AD2015P and 'AD2015N

The above diagram shows the long run and short run aggregate demand and aggregate supply curves of the economy. The aggregate demand curves are also depicted in the graph above.