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Due to COVID-19 situations the oil prices fall in international market. Let’s assume that output starts at its natural level.
What happens to country A's economy (output and price) in the LONG run? Explain your answers using graphs. (150words)
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- Due to COVID-19 situations the oil prices fall in international market. Let’s assume that output starts at its natural level. What happens to the Pakistan’s economy (output and price) in the short run? Explain your answer using AS-AD graphs. What happens to Pakistan’s economy (output and price) in the long run? Explain your answers using graphs.Due to COVID-19 situations the oil prices fall in international market. Let’s assume that output starts at its natural level. a. What happens to the Pakistan’s economy (output and price) in the short run? Explain your answer using AS-AD graphs. b. What happens to Pakistan’s economy (output and price) in the long run? Explain your answers using graphs.Due to COVID-19 situations the oil prices fall in international market. Let’s assume that output starts at its natural level. What happens to Pakistan’s economy (output and price) in the long run? Explain your answers using graphs.
- Due to COVID-19 situations the oil prices fall in international market. Let’s assume that output starts at its natural level. a)What happens to the Pakistan’s economy (output and price) in the short run? Explain your answer using AS-AD graphs b)What happens to Pakistan’s economy (output and price) in the long run? Explain with using graphsAustria is one of the largest exporters of oil. At the end of 2019, the global price of oil fell substantially. For this question, treat oil as a final good, not an input into production. Begin at long-run equilibrium.1. As a result of the fall in the price of oil, Austria's AD (increased,decreased,remained the same,changed ambiguously), SRAS (increased,decreased,remained the same,changed ambiguously), and LRAS (increased,decreased,remained the same,changed ambiguously). GDP (increased,decreased,remained the same,changed ambiguously), unemployment (increased,decreased,remained the same,changed ambiguously), and the price level (increased,decreased,remained the same,changed ambiguously).2. Assume that the government intervened to resolve the output gap. As a result of the government intervention, AD (increased,decreased,remained the same,changed ambiguously), SRAS (increased,decreased,remained the same,changed ambiguously), and LRAS (increased,decreased,remained the same,changed…Austria is one of the largest exporters of oil. At the end of 2019, the global price of oil fell substantially. For this question, treat oil as a final good, not an input into production. Begin at long-run equilibrium. this is all one question please answer everything!As a result of the fall in the price of oil, Austria's AD ( increased,decreased,remained the same,changed ambiguously), SRAS ( increased,decreased,remained the same,changed ambiguously), and LRAS ( increased,decreased,remained the same,changed ambiguously) GDP ( increased,decreased,remained the same,changed ambiguously), unemployment ( increased,decreased,remained the same,changed ambiguously) and the price level increaseddecreasedremained the samechanged ambiguously.Assume that the government intervened to resolve the output gap. As a result of the government intervention, AD ( increased,decreased,remained the same,changed ambiguously) SRAS ( increased,decreased,remained the same,changed ambiguously) and LRAS (…
- Due to COVID-19 situations the oil prices fall in international market. Let’s assume that output starts at its natural level. What happens to the Pakistan’s economy (output and price) in the short run? Explain your answer using AS-AD graphs. (Maximum 150 words)Question 01 Due to COVID-19 situations the oil prices fall in international market. Let’s assume that output starts at its natural level. What happens to the country A's economy (output and price) in the short run? Explain your answer using AS-AD graphs.Suppose that the U.S. economy is at full employment when strong economic growth in Asia increases the demand for U.S.-produced goods and services. How the U.S. price level and real GDP will change in the short run?
- 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.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…
