"Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Using data from the St. Louis Federal Reserve, analyze the effects of a positive supply shock. The U.S. economy experienced a supply shock with the spread of information communication technology and the Internet after 1995. Click the following link to view the Personal Consumption Expenditure price index data from FRED. Using the Series ID PCEPI, plot the the inflation rate from 1982 to 2007 as the percentage change in the Personal Consumption Expenditure price index from the same month in the previous year. O The inflation rate for November of 2021 (shown as 2021 - 11 - 01 in FRED) was %. (Round your answer to two decimal places.) The inflation rate for June of 1978 (shown as 1978 – 06 – 01 in FRED) was %. (Round your answer to two decimal places.)

"Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Using data from the St. Louis Federal Reserve, analyze the effects of a positive supply shock. The U.S. economy experienced a supply shock with the spread of information communication technology and the Internet after 1995. Click the following link to view the Personal Consumption Expenditure price index data from FRED. Using the Series ID PCEPI, plot the the inflation rate from 1982 to 2007 as the percentage change in the Personal Consumption Expenditure price index from the same month in the previous year. O The inflation rate for November of 2021 (shown as 2021 - 11 - 01 in FRED) was %. (Round your answer to two decimal places.) The inflation rate for June of 1978 (shown as 1978 – 06 – 01 in FRED) was %. (Round your answer to two decimal places.)

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 59CTQ: Review the problem in the Work It Out titled Interpreting the AD/AS Model. Like the information...

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Review the problem in the Work It Out titled Interpreting the AD/AS Model. Like the information provided in that feature, Table 24.2 shows information on aggregate supply, aggregate demand, and the price level for the imaginary country of Xurbia. Plot the AD/AS diagram from the data. Identify the equilibrium. Imagine that, as a result of a government tax cut, aggregate demand becomes higher by 50 at every price level. Identify the new equilibrium. How will the new equilibrium alter output? How will it alter the price level? What do you think will happen to employment?
A4 Imagine that in the year 2035, Japan’s economy shrinks significantly, causing a decrease in investment in the U.S. economy. Use the ADAS model to explain the likely short run impacts on U.S. GDP and the aggregate price level. What do you anticipate to happen to U.S. consumption expenditures and U.S. employment? Explain your reasoning for each of your predictions and show graphically as appropriate. Students may utilize Paint, Word (the shapes tool under Insert), OneNote (Draw tab), or hand draw the graphs.
Provide an analysis for the below graph that I generated for the following question. What is the effect of an increase in the Treasury bill rate rising from 7% to 8%, and the government bonds rate from 9% to 11%? Plot the trajectory of GDP, and discuss it.The discussion should not be less than two paragraphs. For your simulation: simulate the model for the period 1900-2000, and shock the interest rates in 1930. The plot should present the trajectory of the GDP from the original steady state (with interest rates 7% and 9%) to the new one. find the trajectory below.
suppose that at a price index of 154 the quantity demand of u.s. real GDP is 10.0 trillion worth of goods. do these data represent aggregate demand or point on an aggregate demand curve? explain your answer?
Economic On April 27, 2023, the U.S. Bureau of Economic Analysis (BEA) released the data on GDP growth for the US economy for the first quarter of 2023 and revealed that the economy grew sluggishly by only 1.1 percent. Based on this report, suppose the U.S. consumers and businesses start to become pessimistic about the direction of the economy and eventually cut consumer and business spending, analyze using the IS-LM and AD-AS frameworks the short and long-run effects of such a shock on prices, output, and real interest rate.
The aggregate demand curve portrays the relationship between price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each.
You have been hired as a Marco Economist by the President of the United States to help evaluate the recentannouncement by Federal Reserve chairman Ben Bernanke that the FED will be increasing interest rates again.Ben Bernanke has justified the move on the grounds that the economy continues to be strong. Answer thefollowing questions. Provide a graphical explanation for your answers whenever possible. 1. What is the fed trying to do?A. slow down the economyB. stimulate the economyC. remains unchanged 2. How is the fed doing it?A. buying bondsB. selling bondsC. remains unchanged 3. What happens to bond prices?A. increaseB. decreaseC. remains unchanged 4. What happens to the interest rate?A. increaseB. decreaseC. remains unchanged
Discuss 4 components of aggregate demand? Find the largest and smallest component.
From 1/1/2020 to 7/1/2020, real GDP decreased but the GDP deflator stayed approximately the same (thus, treat it as the same number at the beginning of this period as it was at the end of this period). According to our aggregate supply/demand analysis, which of the following must have occurred over this time frame? (Use the graph to help you see if you can determine any shift(s).) Group of answer choices a) increase in Aggregate Demand, decrease in Aggregate Supply b) decrease in Aggregate Demand, decrease in Aggregate Supply c) increase in Aggregate Demand, increase in Aggregate Supply d) increase in Aggregate Demand, but no way to determine the direction of shift in Aggregate Supply e) decrease in Aggregate Demand, increase in Aggregate Supply
In 2014, China’s economy slowed significantly causing a decrease in demand for US exports. Use the AD/AS model to explain the likely short run impacts on US GDP and the aggregate price level. What do you anticipate will happen to US consumption expenditure and US employment? Please explain your reasoning for each of your predictions and show graphically as appropriate.
Use an aggregate demand and supply diagram to illustrate and explain the following will affect the equilibrium price level and the real GDP. Describe and analyze the new situation (inflationary gap, recessionary gap, and stagflation).How should the situation be rectified to return to full employment? Technological improvement increase productivity
Let's consider the unlikely (I hope!!!) case of a crash in housing and stock prices later on in 2021. What would be the effect on income and prices? Use the AD/SRAS/LRAS model to derive your answers. Assume we are near full employment now.