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Can we print as much money to increase consumer spending and allow the aggregate to shift to the right
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- How does the aggregate demand and aggregate supply looks in the long run. Explain with the help of a proper graph.Create a graph for a short-run aggregate supply curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis.when hoarding occurs, what problem does it create for an economy? You can use the recent run on grocery stores for food, toilet paper, and cleaning products as an example. Do you feel the government should step in to prevent these types of situations? Why or why not? What types of policies do you think could prevent or help with this type of event? in terms of macro economics.
- Draw a diagram with aggregate demand, short-run aggregate supply, and long-run aggregate supply. Be sure to label correctly.Use the figure to answer the following questions. Explain your reasoning and show your answers on the graph. Copy the image to MSWord, and draw the appropriate lines using the 'design' tab and then select the shapes you want to include, lines, arrows, etc. Save your answer and upload your file. a. At which equilibrium point the economy has an inflationary gap, and what is its value in percentage points? b. At what point the economy is at full employment, and what is its value in trillions of dollars? c. Draw an AD showing a recessionary gap of 0.5 trillion dollars. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.A friend of yours expresses the opinion that the only resource that is important in the macroeconomy is money. He says, “The more money an economy has, the richer it is.” How would you respond?
- How can shipping delays and shortages of intermediate goods cause a recession? Why may these issues lead to a reduction in consumer spending? Consider how consumers change the timing of their purchases to reflect the market.How do changes in aggregate demand and aggregate supply might cause inflation in the economy?If an economy is not expanding and the economy is therefore suffering from high unemployment, then would putting more money in the economy make matter better or worse
