Reference no: EM13740547
Consider the table below for the aggregate supply (AS), and aggregate demand (AD), 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
|
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 onthe graph, axes, and curves; Use X axis for Real GDP and Y axis for price level.).
2. a. Calculate the slope of the AD curve using data in the table/graph.
b. Calculate the slope of the AS curve using data in the table/graph.
c. Using 3-4 well-written sentences and numerical examples in the table for the each of the following two questions.
(i) Explainwhy the AD curve has the slope you calculated as a result of the "wealth effect".
(ii) Explainwhy the AS curve has the slope you calculated as a result of the "sticky price theory".
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 the price level (P) 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, and 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.
|
Discuss what the marshall plan and the iron curtain
: Please pick one of the topics and discuss what it was. The Marshall Plan, The Iron Curtain, The Baby Boom, Consumerism in the 1950's, The Space Race and The Policy of Containment.
|
|
Debate the main pros and cons of using private insurance
: Compare and contrast at least two (2) areas of the economy that the new health care act impacts. Explain your rationale. Debate the main pros and cons of using private insurance versus using the new affordable health insurance system.
|
|
Explore the key concepts framing training
: Justify the need for doctors with advanced medical training in the health care industry. Explore the key concepts framing training, regulations, licensing, and provision of a range of services in today's health system.
|
|
Compare the pros and cons of public and private roles played
: Compare the pros and cons of public and private roles played in promoting health care, in terms of state and federal funding, in a time of threats from bioterrorism and disease-resistant pathogens.
|
|
How an increase in real gdp could occur in the economy
: How an increase in real GDP could occur in the economy and give a specific written real world scenario or example. Include the resulting effect on the price level (P) and give the correct terminology that corresponds to this type of price level chan..
|
|
Growth in market share and growth in profit margins
: Conduct a presentation that included a strategic direction that discussed: growth in market share, growth in profit margins
|
|
Discuss whether or not operating practices
: Discuss whether or not operating practices should be changed to accommodate the tune-ups. Be sure to explain your reasoning. Examine the reasons why input should be gathered from the shop owners.
|
|
What is the ultimate goal of change management
: What is the ultimate goal of change management - What did they do well and what could they have done better?
|
|
Compare and contrast art works sleeping gypsy and the kiss
: Compare and contrast the art works Sleeping Gypsy by Henri Rousseau and The Kiss by Gustav Klimt. Compare the characteristics of impressionism.
|