Business, 19.11.2020 04:20 gabriellarenolp5x7c0

Assume the economy is operating in long-run equilibrium at the full-employment level of output. a.
Draw a correctly labeled aggregate demand and aggregate supply graph that represents this
scenario. (8 pts)
b. Suppose the economy experiences a change in consumer spending due to a sharp increase in
stock market indices and that this has increased the wealth of the nation. (4 pts)
a. i Amend the graph you drew for part (a) to show the results of the change.
b. ii Show the new equilibrium output and price level on your graph.
C. iii What type of gap exists in this economy?
d. iv Explain the effect of this change on the unemployment rate.
C. Recommend a fiscal policy action that could move the economy back to full-employment output.
(1 pt)
d. Explain the effect of the recommended fiscal policy action on (3 pts)
a. i Aggregate demand
b. ii The price level
C. iii The Real GDP

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:30

Which organization was established to train the hard-core unemployed? - better business bureau- equal employment opportunity commission- environmental protection agency- affirmative action committee- national alliance of business

Answers: 1

Answer

Business, 22.06.2019 11:00

The following transactions occurred during july: received $1,000 cash for services provided to a customer during july. received $4,000 cash investment from bob johnson, the owner of the business received $850 from a customer in partial payment of his account receivable which arose from sales in june. provided services to a customer on credit, $475. borrowed $7,000 from the bank by signing a promissory note. received $1,350 cash from a customer for services to be rendered next year. what was the amount of revenue for july?

Answers: 1

Answer

Business, 22.06.2019 15:00

(a) what was the opportunity cost of non-gm food for many buyers before 2008? (b) why did they prefer the alternative? (c) what was the opportunity cost in 2008? (d) why did it change?

Answers: 2

Answer

Business, 22.06.2019 20:50

Happy foods and general grains both produce similar puffed rice breakfast cereals. for both companies, thecost of producing a box of cereal is 45 cents, and it is not possible for either company to lower their productioncosts any further. how can one company achieve a competitive advantage over the other?

Answers: 1

Answer

You know the right answer?

Assume the economy is operating in long-run equilibrium at the full-employment level of output. a.<...

Questions