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1. Using AD-AS diagrams, graphically illustrate and explain how each of the following will affect the overall price level and real GDP in the US in the short run (disregard the self-correcting mechanism). Briefly explain the reason for any shift in AD/AS curve.
a. Consumers expect a recession.
b. Foreign income rises.
c. Workers expect higher inflation and negotiate higher wages now.
d. Dollar appreciates.
e. Interest rate drops.
f. China's stock market crashes pushing the Chinese economy into a recession.
2. During the Great Depression, the US economy experienced a falling price level and declining real GDP. Using an AD-AS diagram, graphically illustrate and explain how this transpired.
3. From time to time, a concern arises that skyrocketing crude oil prices will contribute to a global stagflation. Using an AD-AS diagram, graphically illustrate and explain how this can transpire.
If the United States eliminates the tariff and the voluntary restraint agreement is approved, what will be the U.S. domestic price of the metal?
Give five examples of how would you define social entrepreneurship? Give five examples of how technology is helping alleviate poverty in the developing world? 1000 words.
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