can i get these both solved with a graph please O Macmillan Learningb. An exogenous increase in the price of oil.Price Level (Y)10987321O0123LRASE45Output (Y)6789AD10SRAS For each shock identified below, shift the AD curve, the SRAS curve, or both to show its effects on aggregate demand and/oraggregate supply. Then move point E to the new short-run equilibrium to indicate the new price level P and output Y. Assumethe economy starts out in long-run equilibrium.a. An exogenous decrease in the velocity of money.Price Level (Y)LRASEAD SRAS

The total quantity of all goods (and services) that the economy demands at various price levels is…

Answered: b. An exogenous increase in the price…

b. An exogenous increase in the price of oil. Price Level (Y) 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 LRAS E 4 5 Output (Y) 6 7 8 9 AD 10 SRAS

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

can i get these both solved with a graph please

O Macmillan Learning
b. An exogenous increase in the price of oil.
Price Level (Y)
10
9
8
7
3
2
1
O
0
1
2
3
LRAS
E
4
5
Output (Y)
6
7
8
9
AD
10
SRAS

For each shock identified below, shift the AD curve, the SRAS curve, or both to show its effects on aggregate demand and/or
aggregate supply. Then move point E to the new short-run equilibrium to indicate the new price level P and output Y. Assume
the economy starts out in long-run equilibrium.
a. An exogenous decrease in the velocity of money.
Price Level (Y)
LRAS
E
AD SRAS

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For Shock H: Suppose the economy starts in the long run equilibrium. Illustrate changes that the shock will cause in the short run (using AD-SRAS). Explain why each curve shifts. Determine how the price level and output will be affected in the short run. Mark the output gap on the diagram. Is the output gap positive or negative? Is the economy is booming, or is it in a recession? On the same diagram illustrate how the economy will adjust to the shock in the long run and explain the mechanism. Determine how the price level and output will be affected in the long run. H. There is a stock market crash As a result of this shock, in the short run the (SRAS Curve/AD Curve) will shift? In consequence, in the short run prices and output will? In the short run, there will be a ? (negative/postive) output gap,which means there will be a ? (boom/recession) As time passes, because of high unemployment the wages in the economy will? (decrease/increase) As a result, the SRAS curve will…
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