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Describe the key features of the graph in 250 WORDS OR MORE. You need to start with an
overview to what the graph is about and then you need to cover all key information you can understand from the graph and finish your analysis with what you can conclude from the graph. In particular, the following questions should be addressed: what does each curve represent? Where can such a negative shock in the
Don't forget to start with a plan. DO AN ANALYSIS AND CONCLUDE
Step by step
Solved in 3 steps
- Firm X, a leading manufacturer of rubber tires in country A, caters to almost one-third of the domestic tire market. The country was hit by a recession last year that caused the national output growth to be negative. Simon Reeds, the CEO of firm X, feels that these fluctuations in the business environment are short-lived and expects the economy to recover very soon. In spite of the recession, Simon feels that the firm can actually invest in expanding its facilities as it has sufficient cash flows to continue its operation during the crisis period. The firm's marketing head, Sandra Jones, counters this by saying that the firm is already losing sales due to the recession and they should not increase costs further by making large-scale investments in the present climate. Which of the following, if true, would support the CEO's claim? A. The government recently announced a plan to offer incentives to buyers in the car and household appliances market. B.…Firm X, a leading manufacturer of rubber tires in country A, caters to almost one-third of the domestic tire market. The country was hit by a recession last year that caused the national output growth to be negative. Simon Reeds, the CEO of firm X, feels that these fluctuations in the business environment are short-lived and expects the economy to recover very soon. In spite of the recession, Simon feels that the firm can actually invest in expanding its facilities as it has sufficient cash flows to continue its operation during the crisis period. The firm's marketing head, Sandra Jones, counters this by saying that the firm is already losing sales due to the recession and they should not increase costs further by making large-scale investments in the present climate. Which of the following, if true, would support the marketing head's claim? A. In the previous recession, a leading player in the hospitality sector had expanded its facilities but was unable…I think I got it all wrong. So could someone please redo them and check my answers thank you so much! Especially the last question is "supply results in overall increase of 250,000 dollars or 2,250,000dollars, or 2,500,000dollars in demand deposits" these are the three choices!!
- Using the PS-WS and the IS-LM-PC models explain the short-run and the long-run effects of a supply shock caused by an increase in the Oil prices.After an unexpected ________ in the price of oil, the long-run adjustment decreases the price level and ________ the unemployment rate as they return to their original levels. Select one: a. increase; decreases b. decrease; increases c. increase; increases d. decrease; decreases Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.The following events have occurred in the history of the United States: A deep recession hits the world economy. The world oil price rises sharply. U.S. businesses expect future profits to fall. Explain the combined effects of these events on U.S. real GDP and the price level,starting from a position of long-run equilibrium.
- The following events have occurred in the history of the United States: A deep recession hits the world economy. The world oil price rises sharply. S. businesses expect future profits to fall. Explain the combined effects of these events on U.S. real GDP and the price level, starting froma position of long-run equilibrium.In 2006, the economy of Aptonville had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggragate Demand Shortrun Aggragate Supply 90 $1325 $1085 100 $1300 $1140 110 $1275 $1195 120 $1250 $1250 130 $1225 $1305 140 $1200 $1360 150 $1175 $1415 What was Aptonville’s short-run equilibrium output in 2006?Suppose an economy experiences a positive supply shock. What is the short-run effect on output and the price level? Group of answer choices Output rises and the price level falls. Output and the price level both rise. Output falls and the price level rises. Output and the price level both fall.
- The following events have occurred in the history of the United States: A deep recession hits the world economy. The world oil price rises sharply. S. businesses expect future profits to fall. Explain the separate effects of each event on U.S. real GDP and the price level, starting from a position of long-run equilibrium.In 2014, the economy of Greatstown had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregated Demand Short-run Aggregate Supply Long-run aggregate supply 30 $1455 $1275 $1400 40 $1420 $1300 $1400 50 $1385 $1325 $1400 60 $1350 $1350 $1400 70 $1315 $1375 $1400 80 $1280 $1400 $1400 90 $1245 $1425 $1400 What was Greatstown’s short-run equilibrium output 2014?The short run aggragate supply curve slopes_______ showing a _____________ relationship between _______, a measure of output and ________.