Answered: 11. First, prepare a graphic…

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 5DQ

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The bill includes $130 billion to allow for a return to full-time, in-person teaching at K-12 schools.
assistance to small busines, landlords and renters: 30 Billion
Obomacare Expansion: 34.2 Billion
Child Tax Credit Boost: 110 Billion
Vaccine Distribution: 160 Billion
school credit: 1 Billion
Coronavirus Preparedness and response supplemental appropriation act: 8.3 Billion
Families first coronavirus reposne act 225 billion
paycheck protection program: 483 Billion
Consolidated appropriations act: 920 Billion

So we just had one of biggest (if not THE biggest) actions of Fiscal Policy. Now using
the Agg Model, you will explain what is happening now...

First, prepare a graphic representation off the economy before the Biden Covid Bill. In the space below, insert the names for X and Y axis, graph LRAS and SRAS and AD line, and identify/label equilibrium. Be sure to identity whether the economy is at equilibrium, in expansion or in recession.

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