mitially, an economy has a maximum real GDP of $5 trillion. .) Using the line drawing tool, draw the long-run aggregate supply curve. Label it LRAS,. .) Then suppose that increases in labor productivity increase the productive capacity of the economy. Using the line drawing tool, draw the new long-run aggregate supply curve. Label it LRAS2. Carefully follow the instructions above, and only draw the required objects.
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- According to the Congressional Budget Office's projections, real GDP in 2007 was marginally higher than real potential GDP. If potential GDP is correctly assessed, then during that period : (A) the economy was on its long run aggregate supply curve. (B) the economy was to the left of its long run aggregate supply curve. (C) the economy was slightly to the right of its long run aggregate supply curve.The aggregate supply-aggregate demand model predicts that an unexpected increase in government spending will have an effect. What will be the short-run effects?a.A decrease in the price level and an increase in real output.b.A decrease in the price level and no effect on real output.c.An increase in the price level and a decrease in real output.d.A decrease in both the price level and real output.e.An increase in both the price level and real output.Use the Aggregate supply and Aggregate Demand Model below to answer the questions that follow.Aggregate Supply and Aggregate Demand Model 1. Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd a multinational construction company in which you are the Chief Exec of the firm that that is highly diversified and recieves funds to construct highways and other government funded projects. Also, explain the factors that cause the Aggregate Demand curve to be downward sloping left to right
- If the use of AI increases demand for computers, software, servers, then this is an increase in ___________ would which shift ____________. consumption, short-run aggregate supply up/left investment, AD to the right investment, short-run aggregate supply down/right investment, AD to the left A sustained rise in stock market prices creates _____________ which would shift __________. an increase in wealth, the AD curve to the right a higher government budget deficit, the AD curve to the left a decrease in wealth, the AD curve to the left an increase in capital productivity, the AD curve to the rightUse the Aggregate supply and Aggregate Demand Model below to answer the questions that follow. Aggregate Supply and Aggregate Demand Model(i) Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd a multinational construction company in which you are the Chief Exec of the firm that that is highly diversified and recieves funds to construct highways and other government funded projects. Also, explain the factors that cause the Aggregate Demand curve to be downward sloping left to right.Suppose a country's potential level of output is $90 billion. A decrease in total spending causes aggregate demand to decrease, and output is now $75 billion. What is the country's level of output in the short run? (Answer in billions.) $______
- Use the Aggregate supply and Aggregate Demand Model below to answer the questions that follow.Aggregate Supply and Aggregate Demand Model(i) Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd a multinational construction company in which you are the Chief Exec of the firm that that is highly diversified and recieves funds to construct highways and other government funded projects. Also, explain the factors that cause the Aggregate Demand curve to be downward sloping leftUse the Aggregate supply and Aggregate Demand Model below to answer the questions that follow.Aggregate Supply and Aggregate Demand Model Examine the influence of government expenditure on investment in a nation.Use Jot Inc. Ltd a multinational construction company in which you are theChief Exec of the firm that that is highly diversified and recieves funds toconstruct highways and other government funded projects and explain the factors that cause the Aggregate Demand curve to be downward sloping left to right.By using aggregate supply and demand curves to illustrate your points, discuss the impacts of the following events on the price level and on equilibrium GDP (Y) in the short run: a. A tax cut holding government purchases constant with the economy operating at near full capacity b. An increase in the money supply during a period of high unemployment and excess industrial capacity c. An increase in the price of oil caused by a war in the Middle East, assuming that the Central Bank attempts to keep interest rates constant by accommodating inflation d. An increase in taxes and a cut in government spending supported by a cooperative Fed acting to keep output from falling
- In order to break stagflation, the government has to increase expenditure on food subsidies in the form of food vouchers, unemployment benefits or allowances, wages subsidy to increase household consumption expenditure and boost up the AD. With increased consumption expenditure, aggregate demand will rise, which would send a signal to the aggregate supply (AS) to raise production. This will create a positive effect, which will bring the economy out of recession. Show this in a graph.Draw and carefully describe a graph that utilizes the Aggregate Demand/Aggregate Supply model that would illustrate the state of the aggregate economy in the United States at the very beginning of 2020 before the start of the pandemic and the 2020 recession. Make sure that you explain your graph in your own words. You should draw your own AD/AS graph which you can then embed into your post. Your graph needs to be clearly labeled and explained in some detail. Make sure that your graph includes an aggregate demand (AD) curve, a short run aggregate supply (SRAS) curve, and a long run aggregate supply curve (LRAS, Potential GDP) curve. You should clearly label both axes of the graph.Please Use the Aggregate supply and Aggregate Demand Model below to answer the questions that follow. Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd a multinational construction company in which you are the Chief Exec of the firm that that is highly diversified and recieves funds to construct highways and other government funded projects. Also, explain the factors that cause the Aggregate Demand curve to be downward sloping left to right. Thanks