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Pls help with below homework. Select the correct option and explain it in 7-8 sentences.

}}) Question 5 tab shift T Keynesians believe O that the government should pursue active policies to stabilize economic fluctuations that economies move quickly to their long run equilibrium levels that the long run is more important than short-run fluctuations all of the above none of the above esc STREAM HP Stream caps lock It 4 ㄕˇ →1 A Moving to another question will save this response. Type here to search fn f1 ? f2 A 82 Z f3 # * 3 W E f4 X alt SA S D I Af 4 f5 % R C LO 5 LL f6 T V 6 G hp 17 & B 7 fg H

Refer to the accompanying figure. LRAS Inflation a A 0, y' Output O O An economy is currently in long-run equilibrium at point B, at an inflation rate of m, which is too high to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point creating gap. O SRAS O SRAS AD' AD A; an expansionary A; a recessionary D; a recessionary D; an expansionary

Sub : EconomicsPls answer very faast.I ll upvote. Thank You

A 176.

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D Question 7 Refer to the figure. In the figure, assume the initial real growth rate of the economy is 3 percent when a negative aggregate demand shock shifts the AD curve from AD, to AD3. As a result of the Fed's policy response, the AD curve shifts to AD, in the short run. Which of the following is TRUE about the Fed's policy response? Inflation rate, LRAS SRAS ADS AD4 ► AD; AD2 AD; 3% Real growth O The Fed provided just the right amount of response to the shock. The Fed responded too much to the shock. O The Fed was too fast in responding to the shock. O The Fed responded too little to the shock.

In the figure at right, assume the economy starts out in equilibrium at point d. If the Fed increases the money supply so that the new aggregate demand curve is AD3, then the new short-run equilibrium will be at point A. i. O B. c. C. b. D. a. Price Level 130 120 100 e b LRAS 9 с SRAS₁ SRAS₂ AD₁ Real GDP per Year ($ trillions) SRAS3 AD3 AD₂

Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply. O The size of the labor force O The level of technological knowledge The price level The inflation rate Suppose the economy produces real GDP of $40 billion when unemployment is at its natural rate. Use the purple points (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve on the graph. 132 128 LRAS 124 120 116 Q112 + PRICE LEVEL

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Figure 8.3 Price Level Long run Aggregate Supply A B AS₁ AS2 AD1 AD2 Quantity of Output Long run Aggregate Supply = Potential GDP Refer to Figure 8.3 above. If the economy is at point A, which of the following would cause a change from AD1 to AD2? An increase in expected future inflation. ○ An increase in expected future profit. ○ A tax cut or an increase in either transfer payments. O An increase in the interest rate or a decrease in the quantity of money.

Please please answer this asap... What effects do you think monetary policy and fiscal policy has on the day-to-day operations of a business? Should a business owner be concerned with these kinds of macroeconomic issues? If so, why?

Suppose that for years East Confetti's short-run Phillips Curve was such that each 1 percentage point increase in its unemployment rate was associated with a 4 percentage point decline in its inflation rate. Then, during several recent years, the short-run pattern changed such that its inflation rate rose by 3 percentage points for every 1 percentage point drop in its unemployment rate. Graphically, did East Confetti's Phillips Curve shift upward or did it shift downward? |(Click to select) V

According to the Sticky Price Theory, SRAS curve is upward sloping because: O Some fırms are slow to respond to overall price level changes in the economy. All firms are slow to respond to overall price level changes in the economy. None of the firms respond to overall price level changes in the economy. Some fırms are slow to respond to overall technological changes in the economy. Which of the following correctly explains the sticky-wage effect? As wages are sticky in the short-run due to labor contracts, any increase in price level reduces the real wage, which in turn, reduces the cost of production for the firms and they decrease their supply in the short-run. O As wages are sticky in the long-run due to labor contracts, any decrease in price level reduces the real wage, which in turn, reduces the cost of production for the firms and they decrease their supply in the short-run. As wages are sticky in the long-run due to labor contracts, any decrease in price level increases the…

Suppose the economy is initially at a long-run equilibrium. The Fed then increases the money supply. In the following three diagrams, assume the resulting inflation is unexpected.

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QUESTION 10 OB LRAS * Oc O None of the above. SRAS AD In the graph above, an economy moves from point A to B after being hit by a shock, if the Central Bank takes action to keep the unemployment rate at its natural level, where will the economy move to? OA Real GDP

Suppose the inflation rate has been 15 percent for the past four years. The unemployment rate is currently at the natural rate of unemployment of 5 percent. 30 The Bank of Canada decides that it wants to permanently reduce the infation rate to 5 percent. To de this, the Bank of Canada would use torg-tun Philips curve 25 poley. the natural 20 As a result of this policy, the unemployment rate will be rate of 6 percent and the inflation rate will be edging slowly 15 Use the line drawing tool to draw the line that ilustrates what will happern the Bank of Canadn maintains this policy long enough that workers and fims lower their expectations of future inflation. Property label this line. 10 Short-un Phiips curve Carefully follow the instructions above, and only draw the required objects. 5- Ir the the Bank of Canada policy is successful, the infation rate will be percent and the unemployment rate will beO percent. 10 Unempioyment rate (percent) Click the graph, choose a tool in the palette…

The quantity theory of money: What is the key endogenous variable in the quan-tity theory? Explain the efect on this key variable of the following changes: (a) Te money supply is doubled.(b) Te velocity of money increases by 10%.(c) Real GDP rises by 2%.(d) Te money supply increases by 3% while real GDP rises by 3% at thesame time

Exhibit: Shift in Aggregate Demand LRAS SRAS AD CAD AD In this graph, initially the económy is at point E, with price Po and output Y aggregate demand is given by curve ADo, and SRAS and LRAS represent, respectively. short-run and long-run aggregate supply. Now suppose the Fed decides to reduce the money supply. The economy moves first 4o point in the short-run and then, in the long-run, to point O B: C OCB A:D O D. A

e 4 of 5) - Chromium https://elear IING SYSTEM (ACADEMIC) ples of Macroeconomics|| Spring21 Which of the following would shift the aggregate demand curve to the left? Select one: O a. an increase in exports O b. an increase in the money supply O C. an increase in government spending d. an increase in taxes e here to search hp

Which of the following represents a short-run e_ect of a monetary contraction? Select one: O a. an increase in the interest rate O b. a reduction in the price level O c. all of the above O d. a reduction in output

Only type writing allow....don't  use pepar work .....

Please answers both please

Which of the following would cause the AD curve to shift to the left? Select one: O a. A decrease in the rate of inflation O b. A decrease in the real rate of interest O C An increase in government purchases O d. None of these O e. A decision by the Fed to decrease the nominal interest rate Check

2. Show a AD-AS graph inflation in the short run and the shift in the SAS necessary to eliminate it.

Use the following figure to answer the next question. Price Level P MHURBODDES 0 E 40 18 X DOBO GODD a 4 9 OA) low unemployment OB) expansion OC) hyperinflation OD) stagflation 9 AS₁ Q₁ Q₂ Q3 Real Domestic Output AS₂ AD₁ AD₂ In the figure, AD2 and AS2 represent the original aggregate supply and demand curves. If Q3 is full-employment output, then AD2 and AS₁ best represent a period of

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