What is a V shaped shock and recovery of an economy.  What is a U shaped shock and recovery of an economy?  What is an L shaped shock and “recovery” of an economy?  What is a K shape shock and ‘recovery’ of an economy?  Provide examples for each.  What kind of shock will the implications of the Corona Virus cause to the economy?

Q: Consider the effects of Corona virus pandemic on the macro economy in Kenya. Suppose we assume that…

A: Large negative aggregate demand shock due to the effects of Corona virus pandemic is causes to a…

Q: Using the model of AD and AS, what happens to real GDP, the price level, and unemployment in the…

A: Aggregate demand is the sum of consumption spending, investment, government spending and net…

Q: Refer to the graphs. Which of the following best represents a negative demand shock when prices are…

A: Inflexible price refers to the rigidity of the prices. That means the price will be constant with…

Q: You are examining whether a recession was driven by a negative aggregate supply or negative…

A: Recession refers to the situation when an economy faces fewer economic activities due to a decrease…

Q: What role does the IS curve play in our short-run model? What kind of eco-nomic questions does it…

A: In IS curve it is considered goods market where aggregate demand and aggregate supply considered.…

Q: You are examining whether a recession was driven by a negative aggregate supply or negative…

A: A recession is a macroeconomic term that refers to a significant drop in overall economic activity…

Q: Explain how each ofthe following shocks can impact the demand orsupply of oil: A. A worldwide…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What is the role of supply shocks in the Keynesian explanation of business cycles? What are the…

A: Due to the oil crisis the supply curve received a shock as due to increase in price of oil. Thus…

Q: 9. Which of the following are stages of the business cycle? Select all that apply. A. trough B. peak…

A: Business cycle Business cycles are defined as coordinated cyclical upswings and downswings in broad…

Q: What are supply shocks? Why are policy choices hard when there are negative supply shocks? Would you…

A: A supply shock occurs when an unexpected event alters the supply of goods or commodities, resulting…

Q: Explain the steps that needs to be taken to avoid the unexpected shocks of the market.

A: The macro environment is an outfit that indirectly impacts the effectiveness and functioning of a…

Q: Covid 19 pandemic is an example for Select an answer and submit. For keyboard navigation, use the…

A: Aggregate demand and supply shocks are unexpected change in the economy will shift either the…

Q: Consider the two graphs below. Then answer the questions. Initially both economies on the Left and…

A: Steady-state is an economic concept that aims towards finding an equilibrium between output growth…

Q: If a natural disaster occurs in the US, this is an example of a A) stone cold shock B) negative…

A: A natural disaster is very likely to destroy resources like capital and human resources.

Q: Why, in general, do shocks force people to make changes? Give at least two examples from your own…

A: Shock: It refers to the change in the variable or relationship that shows the considerable effect on…

Q: Explain and discuss the dynamics of a negative supply shock in both the short and long run, using:…

A: While Keynesian's theory works on the rigidity of prices and that price stability should be…

Q: ALEX: Hi, Becky. I’m intrigued to see how macroeconomics allows us to explain recent economic events…

A: The financial system deteriorated as well, an event that deepened the economic downturn even…

Q: Author claims, “The pandemic was unexpected shock. Climate change and climate policy are known…

A: The aggregate demand curve shows the inverse relationship between the price level and the total…

Q: Suppose that the oil price sharply increased for a while, which increase.Can policymakers do…

A: Policymaker: An approach creator is somebody who makes thoughts and plans, particularly those did by…

Q: Using the savings and investment model, predict what will happen to savings, investment and interest…

A: Answer: Impact on the demand for loanable funds (investment): The government generally spends by…

Q: To study macroeconomics, one needs various models with different assumptions about the flexibility…

A: Macroeconomics is the branch of economics that deals with issues concerning the economy as a whole.

Q: How do the long-run model and the short-run model ft together? What isthe purpose of each model?

A: Short-run refers to the time period when some factors of production (at least one) are fixed and…

Q: Which of these are examples of positive real shocks? a Technological booms b, Higher jumps in oil…

A: Positive real shock either increases the demand or supply in the economy.

Q: Describe the two goals that the Federal Reserve is required to pursue with monetary policy. Given…

A: The two goals that the Federal reserve is required to pursue with monetary policy are : Maintain…

Q: ) In the 1970's, the United States had slow growth and high inflation. Which kind of shock best fits…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: 1. a) Construct the AD-AS model showing AD, short run AS and long run AS intersecting at the…

A:

Q: B: This question type awards a fraction of the points available for each correct answer selection…

A: the correct answer is d. nobody is willing to pay money to ensure against it

Q: While there are often multiple components in any shock, which would have the biggest initial effect…

A: The aggregate demand is the total demand of goods and services produced in an economy. The AD curve…

Q: What is positive supply shock? What are the few examples to positive supply shocks? What is the…

A: A supply shock refers to the changes in aggregate supply in the economy.

Q: If there is an aggregate demand shock: a. The IS curve shifts to the right b. The IS curve shifts to…

A: Aggregate demand shows the negative relationship between the total amounts of real goods and…

Q: Author claims, “The pandemic was unexpected shock. Climate change and climate policy are known…

A: The aggregate demand curve shows the inverse relationship between the price level and the total…

Q: What are the main factors affecting equilibrium in goods market (Demand and supply)? Explain both…

A: There are various factors affecting demand and supply in goods market.

Q: On average, households spend 22.37 cents out of each dollar ofincome shocks. When people receive an…

A: Let income earned by households be Y. If the households spend 22.37 cents of each dollar of income,

Q: How does the economy evolve over time after the initial impact of the shock?

A: Shocks can be defined as an unanticipated change in the economy that moves the aggregate demand (AD)…

Q: 1. Suppose we observe that US economy is experiencing low unemployment (3%), faster-than-average…

A: An inflationary gap is said to exist in the economy when its actual gross domestic product exceeds…

Q: Give an example of a demand shock and a supply shock and show how it may push output and employment…

A: In an economy, demand and supply shocks refers to the situation when there is a sudden change in the…

Q: Why does the economy take several periods before returning to its steady state following a shock?

A: A steady-state economy tries to achieve stability among increases in supply and expansion in the…

Q: Use an aggregate demand (AD) and aggregate supply (AS) model to respond to the following questions.…

A: please find the answer below.