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1. Use the AS/AD model to
a. Demonstrate graphically and explain verbally the situation the US economy is currently in.
b. In the diagram you drew for part (a) above, show the impact the Obama administration stimulus package is designed to have on the economy.
c. Discuss how knowing the exact value of potential income/output will impact your answers to (a) and (b) above. NOTE: You do not need to draw any more diagrams here.
2. Consider an economy characterized by the following AE equation: AE = 4000 + 0.8Y.
a. Compute the equilibrium level of Y and illustrate the equilibrium in an AE/AP diagram.
b. Suppose autonomous investment increased by 300. Illustrate the impact of this change in the diagram you drew for part (a) above. NOTE: Be sure to compute the new equilibrium level of Y and include it in your diagram.
c. Correctly link up your diagram for (a) and (b) above to an AS/AD diagram. Be sure to completely label your AS/AD diagram.
What is most likely to go wrong in the analysis of direct material and other direct costs and what could be done about it.
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how to calculate it
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Capitalism is the dominant, most used form of government there is in the globe today. Presently, over 80% of countries use capitalism and a free market economy.
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I want you to do online homework as you did before on aplia.com All questions are 10. They are in Aggregate Demand and Aggregate Supply The deadline within 24 hours. Please do
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