What is the correct option for number 17 ngThe price and quantity have changed about the sameO The price has increased and the quantity has decreasedQUESTION 17Using macroeconomic reasoning about supply and demand, what is the most likely explanation for the relationship between changes in the price and quantity of consumption?O The relationship reflects a supply curveO The relationship reflects a demand curveO The quantity is increasing because the macroeconomy is growing but the price is increasing because of inflationO None of the aboveQUESTION 18Choose the graph that you found most interesting from this assignment and write a paragraph about the following:• Describe how the variables in the graph changed from the beginning to the end of the sample.. Explain why you found the graph most interesting in terms of macroeconomics. Be specific.• How did this graphing assignment help you to better understand the concepts in this week's material?For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).BI U S ParagraphArial10ptClick Save and Submit to save and submit. Click Save All Answers to save all answers.fredgraph (11).pngfredgraph (10).pngEvAfredgraph (9).pngMacBook AirAV T%52Critical Review.pdfE

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QUESTION 17 Using macroeconomic reasoning about supply and demand, what is the most likely explanation for the relationship between changes in the price and quantity of consumption? O The relationship reflects a supply curve O The relationship reflects a demand curve O The quantity is increasing because the macroeconomy is growing but the price is increasing because of inflation O None of the above

QUESTION 17 Using macroeconomic reasoning about supply and demand, what is the most likely explanation for the relationship between changes in the price and quantity of consumption? O The relationship reflects a supply curve O The relationship reflects a demand curve O The quantity is increasing because the macroeconomy is growing but the price is increasing because of inflation O None of the above

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 6SCQ: Suppose concerns about the size of the federal budget deficit lead the U.S. Congress to cut all...

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Question 1) a) In panel (a) the curve shifts upward, what could cause this? O Increase in G (govermment spending)O Decrease in HH wealth due to a decrease in housing pricesO An increase in the overall price levelo Areduction in govemment spending (G) b) Using Figure 2, if this economy is currently at Y1 and consumer wealth increases, then___O AD1 will shift to the left, reflecting a decrease in the real GDP at every price level.O AD1 willshift to the right. reflecting an increase in the real GDP at every price level.O an upward movement along the AD1 wiltake place., reflecting an increase in the price level.O a downward movement along the AD1 will take place, reflecting a decrease in the price level.
Create a graph for an aggregate demand curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis. In your answer, explain why there is an inverse relationship between the price level and real GDP. Use your graph to illustrate your explanations. Also, discuss determinants of Aggregate Demandor factors that shift Aggregate Demand curve.
Please give a detailed solution with an explanation. Please double-check your sources and make sure the answer is 100% correct. Make sure ALL questions are answered too.Blank Answer #1:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #2:this year's pricesthe base year's pricesBlank Answer #3:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #4:this year's pricesthe base year's pricesBlank Answer #5:produced domesticallybought by consumers
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Given the macro economic data below, draw a graph to illustrate if there is arecessionary gap in the given economy.Real GDP $1000BConsumption (100K is Autonomous) $600BInvestment $100BGovernment Spending $200BExport $50BImport $50BMarginal Propensity to Consume 0.50 AD (Expenditure) 45 degree  AD = AS $ 1000B AS (Real GDP) a. Calculate the size of the recessionary gap in the economy. b. What would happen to the recessionary gap if the government cut incometaxes by $50B? c. What would happen to the recessionary gap if the Fed increased discountrates? Explain your answer.
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Real GDP Real GDPDemanded, Price Level Supplied,Billions (Price Index) Billions$100 300 $450200 250 400300 200 300400 150 200500 100 100 Use these sets of data to graph the aggregate demandand aggregate supply curves. What is the equilibriumprice level and the equilibrium level of real output inthis hypothetical economy? Is the equilibrium real output also necessarily the full-employment real output?Explain.b. Why will a price level of 150 not be an equilibriumprice level in this economy? Why not 250?c. Suppose that buyers desire to purchase $200 billion ofextra real output at each price level. Sketch in the newaggregate demand curve as AD1. What factors mightcause this change in aggregate demand? What is thenew equilibrium price level and level of real output?
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