Reference no: EM131283619
Quantitative Literacy Assignment
Aggregate Supply &Aggregate Demand
Consider the table below for the aggregate supply and aggregate demand for goods and services in the United States.
|
Price Level - P (Y Axis)
|
Real GDP Demanded in billions (AD)
|
Real GDP Supplied in billions (AS)
|
|
50
|
16,300
|
15,100
|
|
60
|
16,200
|
15,200
|
|
70
|
16,100
|
15,300
|
|
80
|
16,000
|
15,400
|
|
90
|
15,900
|
15,500
|
|
100
|
15,800
|
15,600
|
|
110
|
15,700
|
15,700
|
|
120
|
15,600
|
15,800
|
|
130
|
15,500
|
15,900
|
|
140
|
15,400
|
16,000
|
|
150
|
15,300
|
16,100
|
|
160
|
15,200
|
16,200
|
|
170
|
15,100
|
16,300
|
Use the following Table for Excel Graph's:
|
Real GDP in billions
|
Price Level - P AS (Y Axis)
|
Price Level - P AD (Y Axis)
|
|
15,100
|
50
|
170
|
|
15,200
|
60
|
160
|
|
15,300
|
70
|
150
|
|
15,400
|
80
|
140
|
|
15,500
|
90
|
130
|
|
15,600
|
100
|
120
|
|
15,700
|
110
|
110
|
|
15,800
|
120
|
100
|
|
15,900
|
130
|
90
|
|
16,000
|
140
|
80
|
|
16,100
|
150
|
70
|
|
16,200
|
160
|
60
|
|
16,300
|
170
|
50
|
1. On the grid below, create a graph depicting the U.S. economy using the table above, andplotthe AD and the AS.(Use EXCEL to plot the graph on a separate sheet if possible, but not required. Use titles on the graph, axes, and curves; USE X axis for Real GDP and Y axis for price level.).
2. Explain using 3-4 well written sentences, two of the reasons the AD curve is negatively sloped. In your explanation, use numerical examples for the price level and Real GDP changes. In addition, using 2-3 well written sentences and numerical examples, explain one of the reasons that theaggregate supply curveis positively sloped in the short-run.
3. Using the graph created from the data in the table, determine the short-run equilibrium price level and level of output. Explain using 2-3 well written sentences how this equilibrium point is determined and include the numerical values.
4. From your graph, explain using 2-3 sentences how an increase in real GDPcould occur in the economy and give a specific written real world scenario or example. Include the resulting effect on price levels and give the correct terminology that corresponds to this type of price level change.
5. On your existing graph, draw what would happen if : 1) crude oil prices fell slightly in addition to 2) stock and housing prices declined sharply. Explainthe result using 2-3 sentences and include numerical examples from your new graphical outcome. Compare the new position of theaggregate supply and demand curves, and the new short-run equilibrium compared to the old one.
|
What are the common perceptual distortions
: What are the common perceptual distortions? Determine how Internet technology and information systems optimize JIT operations and inventory levels. Determine how Internet technology and information systems optimize JIT operations and inventory levels..
|
|
Scientific definition in the book
: Define Management by your own word and compare it with the scientific definition in the Book. Write notes about the Evolution of Management.
|
|
Organization culture as a grass-roots effort
: Discuss how you might change your organization's culture as a grass-roots effort, or starting at the bottom of the firm to create change?
|
|
Allowing software users to identify and report bugs
: What are the advantages of allowing software users to identify and report bugs?- What are the disadvantages?
|
|
Find short-run equilibrium price level and level of output
: Using the graph created from the data in the table, determine the short-run equilibrium price level and level of output. Explain using 2-3 well written sentences how this equilibrium point is determined and include the numerical values.
|
|
Developing an integrated approach to marketing a product
: Developing an integrated approach to marketing a product, service, or idea ensures that the 4 Ps are compatible (productl, production, place and promotion). There are some products whose value or utility are challenging to define and must be remarket..
|
|
What are the implications of trend to agency problems
: To evaluate the corporate finance concept based on relevant financial information as well as supported by the foundation of corporate finance theories - Can the goal of maximizing the value of the stock conflict with other goals such as avoid..
|
|
Play the social security game
: Play the Social Security Game (Links to an external site.) to solve the Social Security problem. Detail your choices, noting the why's of your choices and also discuss the effects on the stability of employment, inflation, and GDP as a result.
|
|
What type of training did you receive in order to perform
: What type of training did you receive in order to perform your job?- Did you receive training on statutes such as ADA, FMLA, ADEA, and Title VII?
|