AB 204 Unit 9 Assignment Monetary and Fiscal Policy, Macroeconomic Fluctuations and Macroeconomic Equilibrium
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AB 204 Unit 9 Assignment Monetary and Fiscal Policy, Macroeconomic Fluctuations and Macroeconomic Equilibrium
For more course tutorials visit www. tutorialrank. com
. Refer to the sets of the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves. Use the graphs to explain the process and steps by which each of the following economic scenarios will shift the economy from one long-run macroeconomic equilibrium to another equilibrium. Under each scenario, elaborate the short-run and long-run effects of the shifts in the aggregate demand and aggregate supply curves on the aggregate price level and aggregate output( real GDP).
Suppose the household wealth decreases due to a decline in the stock market asset prices( See the set of graphs below and pay attention to the 3-stage shifts in graphs).
Assume the government lowers taxes, which increases the household’ s disposable income. However, the government purchases( spending) remains the same.( See the set of graphs below and shifts in graphs)
2. Suppose the economy of a hypothetical country has reached its long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap,