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 ,