1A) Using the static AD/AS model to explain how the job keeper (wage subsidy) policy worked to sustain the economy even though unemployment rate in Australia had increased during Covid-19 period? 1B) justify in detail the difference between U shaped recoveries and V shaped recoveries?
Q: Using graphical illustration of AS-AD framework, show the effects of following events on real output…
A: Note: As per the guidelines we will answer only three subparts. Please resubmit the question again…
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A: The wage subsidy(job keeper policy) is the direct payment to the worker by the government. It…
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A: ANSWER The economic growth can be obtained by two ways - Rise in AD or Rise in AS.
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A: Answer in step 2 Note please post second part separately thankyou ?
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1A) Using the static AD/AS model to explain how the job keeper (wage subsidy) policy worked to sustain the economy even though
1B) justify in detail the difference between U shaped recoveries and V shaped recoveries?
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- How is long-term growth illustrated in an AD/AS model?Y5 Consider an AS-AD model for the U.S. Suppose an economic expansion in Mexico increases income for the average Mexican household. Mexico is a large trading partner with the US. This expansion would cause: a. the U.S. price level to rise and real GDP to fall. b. the U.S. price level and real GDP to increase. c. the U.S. price level to fall and real GDP to rise. d. the U.S. price level and real GDP to fall.1. Using the AS-AD model, graph and explain the effects of Covid-19 on the U.S. macroeconomy by comparing 2019 vs. 2020. Label the years on all curves, the axis, and the equilibrium. Ignore macroeconomic policy responses, such as the CARES act. Which curves shifted which direction, and why? 2. Now introduce any macroeconomic policy response. What curves shift which direction, and why? 3. What were the equilibrium quantities for both axis?
- Discuss how the AD/AS model can explain economic growth, recessions, as well as changes in unemployment and inflationary pressures. (11.5)6.1.What is an AD-AS model and what does such a model as per the givendiagram essentially focus on?6.2.Discuss the diagram in detail by first explaining what leads to step Step 1(representing a shift in curves on the diagram) and indicating what occursto cause shifts in some of the curves. Then discuss Step 2 (whichrepresents other macroeconomic changes) and indicate what happens toother variables when there are shifts in some of the curves as per Step 1. 6.3.What, in general, do the points of intersection between the AS and AS2curves and the AD curve show?6.4.When the LAS curve moves to the right to LRAS2, what exactly do thepoints of intersection between the AS and AS curves and the AD1 curve,indicated as point 1 and point 2, reflect on the diagram?Please no written by hand solution Consider the following economic situations:C = $4.0 trillionI = $1.5 trillionG = $3.0 trillionT = $3.0 trillionNX = $1.0 trillionF = 0mpc = 0.8d = 0.35x = 0.15r = 1% λ = 0.5A. Calculate an expression for the IS, MP and AD curves ( r= ?, IS Y= ?, AD Y=?)B. Let AS curve be given by the relation: π = 6 + 1.5 (Y - 25.5) (i.e. the price shock is zero). What are the equilibrium values of inflation, output and the real interest rate(π, Y, r)?C. Suppose government purchases are raised from $3.0 trillion to $3.5 trillion. What are new short-run equilibrium inflation values, output and the real interest rate (π, Y, r}?D. Suppose a financial crisis begins, and ƒ increases ƒ = 3. (Assume government purchases are again as in part (a). What are the new short-run equilibrium values of inflation, output, and the interest rate (π, Y, r}?(Please solve all the parts with numerical steps so it could be practiced easily)
- Explain why proponents of Keynesian economics believe that it is unlikely for wages and prices to decrease, even if cyclical unemployment is high, and therefore the best remedy to correct a recessionary gap is through stimulating AD. How can just a little bit more extra spending in the economy lead to a much greater impact on real GDP produced? (12.2)3. a) Using AD-AS model, explain how a negative demand shock due to COVID 19 will affect the economy in the short run and long run (Show short run and long run adjustment in a single diagram).11. Which of he following statements accurately explain the scenario illustrated by these diagrams? a) Assuming ADo and AEo are the original positions of the AD and AE curves respectively, the original situation illustrated is on of a recessionary gap of 10. b) To restore full-employment equilibrium Aggregate Expenditures must be increased to AE1 which is equivalent to shifting the AD curve to AD1 c) Because the short-run Aggregate Supply (AS) curve is upward sloping, the shift in AD will be associated with some products price inflation. This will cause the AE curve to decline from AE1 to AE* because of the wealth, interest rate, and trade effects of inflation. d) All the above. e) Only (a) and (b) are true f) None of the above.
- 1. When the federal government engages in COVID-19 fiscal stimulus such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the American Rescue Plan Act this will affect the AD-AS model by: Group of answer choices a. Decreasing aggregate demand (AD). b. Increasing aggregate demand (AD). c. Decreasing aggregate supply (AS). d. Increasing aggregate supply (AS).Do supporters of the Keynesian perspective generally prescribe a hands-off approach to managing the economy, or support an active role for the government in managing the economy? Why? (12.4)South Korea, Japan, and China are the major buyers of Qatar’s natural gas. During the COVID-19 pandemic, these counties suffered from a sharp reduction in economic growth rates. Based on our discussion of chapters 9 and 10, Use the AD and AS macroeconomic equilibrium model to show, graphically, the short run and long run impact of the low economic rates in South Korea, Japan, and China on the macroeconomic equilibrium in the Qatari’s economy (Ceteris Paribus). Assume that Qatar’s economy was initially operating at the potential level of GDP and there is no government or central bank intervention. Briefly explain