(a) How do you think the above impacted Real GDP and the inflation rate? (b) Do you think the economic growth rate will be higher in the short term? Explain your choice in terms of the movement(s) of the AD-AS curves. (c) What might be the impact on the long-term economic growth? Explain your choice in terms of the movement(s) of the AD-AS curve. (d) Given the reduced trade between nations, countries will try to adjust their foreign exchange rate to reduce trade deficits. How will the country you chose for your presentation respond to improve their trade deficit?
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When the pandemic hit at the beginning of 2020, everything came to a halt. In a single month, 17 million Americans lost their job, and the
To improve the impact of the pandemic, most countries adopted an expansionary monetary policy. The change in the real interest rate influenced the goods market. Aggregate demand changed but there was no change in
Respond to the following questions based on the above scenario. Explain your choices in your own words in no more than 4 sentences and draw diagrams as appropriate to depict the different outcomes.
(a) How do you think the above impacted Real GDP and the inflation rate?
(b) Do you think the
(c) What might be the impact on the long-term economic growth? Explain your choice in terms of the movement(s) of the AD-
(d) Given the reduced trade between nations, countries will try to adjust their foreign exchange rate to reduce trade deficits. How will the country you chose for your presentation respond to improve their
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