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In: Economics

Q1 .. Ministry of Social Works of Kuwait will build one new school in Salmiya and...

Q1 .. Ministry of Social Works of Kuwait will build one new school in Salmiya and one new hospital in Ahmadi

Write the short essay (70-100 words) by answering the below questions:

a. What is changing, AD or SRAS?

b. Will it increase or decrease? Explain how this change will take place.

c. Draw the appropriate change below.

d. What happened to Real GDP?

e. What phase of the business cycle would the economy be in?

f. What is likely happening to unemployment?

g. What happened to price level?

Q2 . Banks offer lower interest rate than last month

Write the short essay (70-100 words) by answering the below questions:

a. What is changing, AD or SRAS?

b. Will it increase or decrease? Explain how this change will take place.

c. Draw the appropriate change below.

d. What happened to Real GDP?

e. What phase of the business cycle would the economy be in?

f. What is likely happening to unemployment?

g. What happened to price level?

Q3 - Firms expect lower price level in the future

Write the short essay (70-100 words) by answering the below questions:

a. What is changing, AD or SRAS?

b. Will it increase or decrease? Explain how this change will take place.

c. Draw the appropriate change below.

d. What happened to Real GDP?

e. What phase of the business cycle would the economy be in?

f. What is likely happening to unemployment?

g. What happened to price level?

Q 4 - Country experiences a decrease of the number of expats

Write the short essay (70-100 words) by answering the below questions:

a. What is changing, AD or SRAS?

b. Will it increase or decrease? Explain how this change will take place

. c. Draw the appropriate change below.

d. What happened to Real GDP?

e. What phase of the business cycle would the economy be in?

f. What is likely happening to unemployment?

g. What happened to price level?



















Solutions

Expert Solution


Rahul Sunny answered 2 years ago
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