Draw a AD/AS graph with three curves that shows high inflation

Q: What should a country do to push the country out of the Keynesian zone? a. Increase aggregate supply…

A: Keynesian zone is the zone where the equilibrium level of gross domestic product of a country is…

Q: Which of the following terms refers to a concept that helps to explain why deflation can create a…

A: Deflation is defined as a fall in the general price level. It is a negative rate of inflation.

Q: Using the AD-AS model, discuss the money neutrality in the short-run and in the long-run.

A: The neutrality of money is a macroeconomic concept that asserts that the changes in the money supply…

Q: In the Keynesian framework, which of the following events might cause inflation? Group of answer…

A: In the Keynesian framework, any change in the market demand and supply will lead to influence the…

Q: The slope of the AD curve:(a) Why does the AD curve slope downward?

A: ANS The Aggregate Demand (AD) curve is the curve that represents how the quantity of total demand of…

Q: Consider a hypothetical country in which, initially, real GDP equals potential GDP. Suppose that the…

A: In an economy, the potential GDP refers to the maximum level of output that can be generated…

Q: According to the Keynesian framework, ____________ in _______________ may cause inflation, but not a…

A: Inflation usually means rise in prices and and recession is such a period where less demand are seen…

Q: Make a graph that shows where Indonesia currently is on the business cycle. Can you also include an…

A: The economies around the world work according to the changes in the changes in their consumption…

Q: A leftward shift in the AD curve might be caused by which of the following? falling price…

A: The total amount of products and services that consumers are willing to buy in an economy over a…

Q: Keynes' law advocates an increase in taxes in order to O fight inflation. increase consumer…

A: Keynesian economics is a theory in economics about the total spendings in the economy and its…

Q: A rightward shift in the aggregate demand (AD) curve indicates

A: Aggregate Demand is the sum total of demand for goods and services demanded by the people of the…

Q: using an appreciate graph discuses the contractionary policies in order to control inflation

A: Inflation is defined as the continuous rise in the level of price in the economy. In order to…

Q: What caused stagflation? How did it affect the world economy in the 1970s?

A: It is an economic situation, where economic growth is slow and the inflation rate is high and having…

Q: Discuss the possible ways to compact inflation

A: Inflation refers to presistent rise in general price level. Due to inflation the purchasing power of…

Q: A decrease in the price level will: (2) (a) shift the AS curve to the left. (b) shift the AD curve…

A: In the AD-AS model, price is one of the variable that is placed on vertical axis to show the…

Q: Draw a conventional aggregate demand curve on a graph. Then add three different aggregate supply…

A: Answer: The graph is given below: According to the above figure, the x-axis measures the output,…

Q: Explain what will happen in a nation that tries to solve a structural unemployment problem using…

A: Note : Hello dear student. As you have asked multiple questions. I am going to answer first question…

Q: You are the President and the nation is slipping into recession. Using the Keynesian AD/AS theories…

A: The Keynesian viewpoint is concerned with aggregate demand. The concept is simple: businesses only…

Q: Name 10 countries with the highest policy rate and the impact of the policy rate on their economies

A: The countries having the highest policy rates as of 2019 are listed in the table

Q: Explain the components of Current Accounts

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: monetary works in a period of recession

A: Recession refers to significant decline in economic activities, the economic measures and growth as…

Q: Which one of the following shocks can decrease prices and cause unemployment to rise? a) decrease…

A: Due to an increase in government loans or contractionary monetary policy, the interest rate in an…

Q: What macro economics

A: Meaning of Economics: The term economics refers to the situation under which there remain…

Q: Which of the following would be most likely to produce a leftward shift of the aggregate demand (AD)…

A: Aggregate demand curve(AD)  is the aggregation of demand of all the goods and services in an…

Q: How can they say that "Rising prices are symptom of an expanding current supply"?

A: Inflation is the rate of increase in prices over a given period of time. Inflation at macro level…

Q: Use aggregate supply and demand diagrams to explain what would happen to GDP and inflation in the…

A: Government spending is the total spending by government on all goods and services in a given period.…

Q: The graph shows the aggregate demand (AD) curve and the long-run aggregate supply (LRAS) curve for a…

A: Increase in human capital:If Human capital of workers increase in an economy, then the long-run…

Q: What are some examples of shocks that shift the AD curve? What about theAS curve?

A: Aggregate supply is the total amount of goods and services that firms are willing to sell at a given…

Q: In what words did the scholars criticize Keynes's approach?

A: Prof. Keynes established the definitional or accounting equality of savings and investment, it has…

Q: Hayek says that markets will heal themselves and that government should not intervene. How does the…

A: The classical are the advocates of the non-interference of the government in the economy which is…

Q: Will not change AD Increases AD Decreases AD Answer Bank a reduction in government spending…

A:

Q: We often use the SRAS/AD model to describe which of the following?     short run economic…

A: SRAS/AD model consists of a downward sloping aggregate demand  curve “AD” and an upward sloping…

Q: Do you think there is a risk of stangflation in the world in the current economic situation?

A: Stagflation is defined by slow economic growth, relatively high unemployment, or economic stagnation…

Q: What would be the impact of an appreciating currency on aggregate demand? a) Decrease b) Increase

A: The impact of an appreciating currency on aggregate demand will Decrease.

Q: A decrease in the price level will: (a) shift the AS curve to the left. (b) shift the AD curve to…

A: The AD -AS model is used to determine the equilibrium price level and the equilibrium real domestic…

Q: A country with a small Aggregate Demand shock (a shift to the right in the AD curve) may have a…

A: All positive aggregate demand shock might have a generous economic blast, however in some cases…

Q: Country A faces both a rise in Real GDP and Price Level. What does this say about its AD and LRAS,…

A: ‘Real GDP’ measures the ‘goods & services’ valued at a constant price. ‘Real GDP’ or ‘gross…

Q: In the Aggregate Supply – Aggregate Demand Model, an increase in the growth rate of a country's…

A: Higher growth rate in trading partner will increase their import demand, in turn increasing export…

Q: A decrease in the price level will:  (a) shift the AS curve to the left. (b) shift the AD curve to…

A: In Aggregate demand/ Supply model, the change in price level does not shift the AD and AS curve.…

Q: A decrease in money supply growth will cause the: LRAS curve to shift to the left. AD curve to shift…

A: Answer -1  A drop in the money supply is accompanied by a corresponding decrease in nominal output,…