Use the following information to answer questions 5 through 7: The graph below shows the AD-AS diagram for Spain. All numbers are in billions. 1100+ 1000 AD 900 - 800 - 700+ 600+ 500+ 400+ 300- 200 100+ LRAS 100 200 300 400 500 600 700 800 900 1000 110 Real GDP 5. What is the level of Potential GDP in Spain? 6. What is the size of real GDP in the short-run equilibrium? 7. What is the price level in the short-run equilibrium? Price Level

Use the following information to answer questions 5 through 7: The graph below shows the AD-AS diagram for Spain. All numbers are in billions. 1100+ 1000 AD 900 - 800 - 700+ 600+ 500+ 400+ 300- 200 100+ LRAS 100 200 300 400 500 600 700 800 900 1000 110 Real GDP 5. What is the level of Potential GDP in Spain? 6. What is the size of real GDP in the short-run equilibrium? 7. What is the price level in the short-run equilibrium? Price Level

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macro Economics And The Self Regulating Economy

Section: Chapter Questions

Problem 18QP

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The graph below shows the AD-AS diagram for Spain. Suppose that the economy is initially in long-run equilibrium with the price level of 900. Now suppose that the Aggregate Demand (AD) curve shifts left from AD1 (blue) to AD2 (green). 1200 AD 1100 1000 Price Level ADS 900- 800 79R ST 600* 500 400 300 200- 100- LRAS 100 200 300 400 500 600 700 800 900 1000 1100 120 Real GDP Q 1. What is the new GDP in the short-run as a result of this shift? I 2. What is the new price level in the short-run as a result of this shift? 3. What is the price new long-run equilibrium as a result of this shift? 4. What is GDP in the new long-run equilibrium as a result of this shift? 5. What causes the economy to move from the short-run equilibrium to the new long-run equilibrium? O Decreased wages. O increased wages. O Increased prices. O Decreased prices.
Make a graph that shows where Indonesia currently is on the business cycle. Can you also include an AD-AS Model graph that shows if the economy is currently experiencing a recessionary gap, expansionary gap, or long run equilibrium?
The graph below shows the AD-AS diagram for Spain. All numbers are in billions. 1. What is the size of real GDP in the short-run equilibrium? answer "a". 2. What is the price level in the short-run equilibrium? answer "b". 3. What is the level of Potential GDP in Spain? answer "c".
1. The graph below shows the AD-AS diagram for Canada. 1200+ 1100+ 1000 AD 900 800 700+ 600- 400 300 200 100- LRAS 100 200 , 300, 400 500 600 700 800 900 1000 1100 126 Real GDP What type of the GDP gap is observed in Canada (select one)? a. There is no recessionary or inflationary gap. b. The economy is facing a recessionary gap. c. The economy is facing an inflationary gap. Price Level
The table below shows information on aggregate supply, aggregate demand and the price level for the imaginary country of Xurbia. Price Level AD AS 110 700 600 120 690 640 130 680 680 140 670 720 150 660 740 160 650 760 170 640 770 Plot the AD/AS diagram from the data shown (Don't have to show graph but do draw it to help you answer the questions). a. Identify the equilibrium. b. Imagine that as a result of a government tax cut, aggregate demand becomes higher by 50 at every price level. Identify the new equilibrium. c. How will the new equilibrium alter output? How will it alter the price level? What do you think will happen to employment?
17 01:27:36 Use the following diagrams for the U.S. economy to answer the next question. AS₁ AS₂ 这 AD Real GDP (1) AS₂ AS, * AD (3) Real GDP (2) NY AD₂ AD₁ Real GDP AD₂ Real GDP AD₁ If the economy is initially at full employment, which of the diagrams best portrays a recession resulting from a decrease in government purchases?
120- 115- 110- 105- 100- 95- 90- 85+ Price level 1.1 S LAS D B SAS₁ ch SASO AD ADO 1.2 1.3 1.4 1.5 1.6 Real GDP (trillions of 2007 dollars) 1.7
Use the following information to answer questions 5 through 7: The graph below shows the AD-AS diagram for Spain. All numbers are in billions. 1100- 1000 AD 900 800 700- 600 - 500 400- 309 RAS E200. 10- LRAS 100 Z00, GB 500 600 700 800 900 1000 10 5. What is the level of Potential GDP in Spain? 6. What is the size of real GDP in the short-run equilibrium? 7. What is the price level in the short-run equilibrium?
Question 47 The graph below shows the AD-AS diagram for Brazil. Suppose that the economy is initially in long-run equilibrium with the price level of 800. Now suppose that the Aggregate Demand (AD) curve shifts left from AD1 (blue) to AD2 (green). 1200 ADX 1100- 1000 Price Level ADR 900- 800 700 600 500RASI 400* 300 200- 100- < 100 LRAS 200 300 400 500 600 700 800 900 1000 1100 120 Real GDP What is the price level in the new long-run equilibrium as a result of this shift?
include a graph that shows where Canada currently is on the business cycle. Also include an AD-AS Model graph that shows if the economy is currently experiencing a recessionary gap, expansionary gap, or long run equilibrium.
Create a graph that shows where Mexico currently is on the business cycle. Be sure to include an AD-AS Model graph that shows if the economy is currently experiencing a recessionary gap, expansionary gap, or long run equilibrium.
The following graph shows the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS) for a hypothetical economy. PRICE LEVEL 360 LRAS 300 240 180 120 60 0 0 4 8 12 16 REAL GDP (Trillions of dollars) Suppose the economy is in short-run equilibrium. The consistent with full-employment output. SRAS AD 20 20 24 ? of $4 trillion drives unemployment the unemployment rate Suppose public officials are concerned about the $4 trillion gap in the economy and the resulting higher-than-expected aggregate demand. The government has decided to follow a passive approach to policymaking.