Question

In: Economics

Hello, I want to ask two questions about Changes in Equilibrium: Aggregate Supply Shocks. 1. The...

Hello, I want to ask two questions about Changes in Equilibrium: Aggregate Supply Shocks.

1. The consequences of climate change on the economy is a popular topic in the media. Suppose that a series of wildifres destroys crops in the western states at the same time a hurricane destroys refineries on the Golf Coast.

a) Using aggregate demand and supply analysis, explain how output and the inflation rate would be affected in the short and long runs.
b) Show your answer graphically.

2. Suppose that the President gets legislation passed that encourages investment in research and developent of new technololgies. Assuming this policy results in positive technological change for the U.S. economy, what does aggregate demand and supply analysis predict in terms of inflation and output?

Please answer these with deep insight and clear explanation. Thank you

Solutions

Expert Solution


Related Solutions

Hello. I want to ask how to construct an equation that makes Torque Output of Axial...
Hello. I want to ask how to construct an equation that makes Torque Output of Axial Flux Permanent Magnet Motor as function of Variable Air Gap. How it leads to that?
Question 1: Suppose an economy is in equilibrium. a) Using aggregate demand and aggregate supply, illustrate...
Question 1: Suppose an economy is in equilibrium. a) Using aggregate demand and aggregate supply, illustrate the equilibrium. Do not forget to include the long-run aggregate supply. b) Now suppose the central bank decided to increase the money supply in the economy. Using the theory of liquidity preference and the money market graph, illustrate what is going to happen to the aggregate demand. c) Draw the new short-run equilibrium of the economy, as a result of the shift in aggregate...
1.create an aggregate demand and aggregate supply model below to explain changes in the economy as...
1.create an aggregate demand and aggregate supply model below to explain changes in the economy as a result of covid-19. 2. how will the cares act affect the U.S. Economy, including changes in fiscal policy, proce level, AD, real GDP and unemployment. INCLUDE A MODEL GRAPH. 3. explain the impaxt of the CARES Act on the Federal Budget.
Hello, I wanna ask about how the recession affects the investment. For example, we bought an...
Hello, I wanna ask about how the recession affects the investment. For example, we bought an office building by lease. How much the recession will affect our lease if the value of the building falls next year. We're about to compare between buying by lease and mortgage. Thank you so much for your help. Mila
1. Show in the aggregate demand - aggregate supply framework (AD/AS) an economy in long-run equilibrium....
1. Show in the aggregate demand - aggregate supply framework (AD/AS) an economy in long-run equilibrium. 2. Again in the AD/AS framework, show an economy with an inflationary gap and then show the effects of additional stimulus, say a tax cut, on this economy in the short-run. 3. Suppose that after the stimulus a trade war involving intermediate goods breaks out, reducing aggregate supply. Show the long and short-run effects of this trade war being very clear about price level,...
1. Identify the correct statement. Aggregate demand alone determines equilibrium price and output. A Aggregate supply...
1. Identify the correct statement. Aggregate demand alone determines equilibrium price and output. A Aggregate supply alone determines equilibrium price and output. B Aggregate demand shows the positive relationship between price level and real GDP. C Aggregate supply shows the negative relationship between price level and real GDP. D Aggregate demand and aggregate supply determine equilibrium price and output. 2. Assume that for a given year, the nominal interest rate is 9 percent while inflation rises to 11 percent indicating...
during a patient assessment, what are the important questions to ask your patient? i want to...
during a patient assessment, what are the important questions to ask your patient? i want to know about integumentary ststem, its importance and goals on the body system
Aggregate Demand and Aggregate Supply: Assume that the economy is in short run equilibrium, and experiencing...
Aggregate Demand and Aggregate Supply: Assume that the economy is in short run equilibrium, and experiencing a recession Build the Aggregate Demand/Aggregate Supply graph which corresponds to this situation. Remember to label everything (all curves and axis and equilibrium) and include the long-run potential curve. Suppose The Fed were to make an open-market purchase of $200 million in US Treasury bonds. Is this a shift or a movement along a curve? Which curve? Graph it in such a way that...
Scenario: Suppose an economy is in equilibrium. a) Using aggregate demand and aggregate supply, illustrate the...
Scenario: Suppose an economy is in equilibrium. a) Using aggregate demand and aggregate supply, illustrate the equilibrium. Do not forget to include the long-run aggregate supply. b) Now suppose the central bank decided to increase the money supply in the economy. Using the theory of liquidity preference and the money market graph, illustrate what is going to happen to the aggregate demand. c) Draw the new short-run equilibrium of the economy, as a result of the shift in aggregate demand...
Hello! I have worked out all these questions, but want to double check them with your...
Hello! I have worked out all these questions, but want to double check them with your answers before submitting them. Thanks! 1. On December 31, 20X1, a company adopted the dollar-value LIFO inventory method. Inventory at the end of 20X1 for its only inventory pool was $400,000 under the dollar-value LIFO method. At the end of 20X2, inventory at year-end cost is $473,000 and the cost index is 1.10. At the end of 20X3, inventory at year-end cost is $492,000...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT