U.S. economy Plot the graphs for the following: Consumer market: using 500 lbs. for Q and...

U.S. economy

Plot the graphs for the following:

Consumer market: using 500 lbs. for Q and $500 for P as point A (equilibrium).

Labor market: using 5 laborers and $5.00 for wage as point A (equilibrium).

Government market: using 50 jets for Q and $5 billion for P as point A (equilibrium).

AD/AS graph: using 19.1 trillion for RGDP and 1.9% for inflation as point A (equilibrium).

How will our AD/AS graph look like when Americans’ incomes increase thereby increasing quantity of goods in the consumer market?
How will our AD/AS graph look like when labor unions are able to increase their salaries in the labor market?
How will our AD/AS graph look like when U.S. government buys less jets in the government market?
How will our AD/AS graph look like when Congress implements an income tax hike in the labor market?

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

3. For the following changes in an economy, explain (both text and graphs) using an LRAS-...

3. For the following changes in an economy, explain (both text and graphs) using an LRAS- AD-SRAS framework, whether short-run aggregate supply or long-run aggregate supply will be affected. Also, indicate the direction of the change in short and long run, effect on price, unemployment and real GDP. [Assume the economy is at the long run equilibrium & write a new graph for each question]. [4.0] a. An unfavorable supply shock (loss due to hurricane or fire). b. The stock...

Suppose the goods market in an economy is represented by the following equations. C = 500...

Suppose the goods market in an economy is represented by the following equations. C = 500 + 0.5YD I = 500 – 2000 i + 0.1Y G = 500 X = 0.1Y* + 100e Q = 0.2Y - 100e T = 400 Y* = 1000 i = 0.05 (5%) e = 1 Z = C + I + G + X - eQ Y = Z (equilibrium condition) Suppose G increases by 100 (to 600). Calculate the new equilibrium level...

Assume the U.S. is a large open economy. Use the appropriate graphs to show how a...

Assume the U.S. is a large open economy. Use the appropriate graphs to show how a decrease in taxes and an increase in government spending would affect national savings, investment, the real exchange rate, net capital outflow, net exports and the real exchange rates. Assume that the tax cuts were equal to government spending.

Using GRAPHS and explanation, show the 3 states of the economy in the short run as...

Using GRAPHS and explanation, show the 3 states of the economy in the short run as compared to the natural rate of GDP.

) Using graphs of both the product market and the labor market, explain what happened to...

) Using graphs of both the product market and the labor market, explain what happened to restaurant workers in March of 2020

Assume that the U.S. is a large country in the market for flip-flops. U.S Q Supply=...

Assume that the U.S. is a large country in the market for flip-flops. U.S Q Supply= 10P Q Demand= 105-5P ROW Q Supply= 20P Q Demand= 90-10P 1. calculate the free trade price, based on supply and demand in both the U.S. and the Rest of the World (ROW). Suppose the U.S —as a large country—puts a $1 tariff on this good. What will be: a. the equilibrium price (PUS) in the U.S.? b. the equilibrium price (PROW) in the...

Question 1 a) Using graphs and explaining the mechanisms, determine the equilibrium in an open economy...

Question 1 a) Using graphs and explaining the mechanisms, determine the equilibrium in an open economy using the model of the market of loanable funds and foreign currency exchange. Discuss how the interest rate, r, and the exchange rate, e, are determined. b) In the above, what happens when the government runs a budget deficit? c) In question (a), what happens if the government decides to implement an import quota? Briefly explain why a government would implement such a trade...

Assume you plot the monthly returns for a stock and also for the S&P 500. Using...

Assume you plot the monthly returns for a stock and also for the S&P 500. Using regression analysis, the straight line through these points that is developed by the analysis is referred to as the ______ which has a slope of _____ and an intercept of ______. A. characteristic line; alpha; beta B. security market line; alpha; gamma C. characteristic line; gamma; alpha D. security market line; beta; gamma E. characteristic line; beta; alpha

Suppose inflationary expectations in the economy decrease. The following graph shows the market for bonds in the U.S

15. The Fisher effect Suppose inflationary expectations in the economy decrease. The following graph shows the market for bonds in the U.S. The upward-sloping orange line represents the supply of bonds, and the downward-sloping blue line represents the demand for bonds. Adjust the following graph to show the effect of decreased inflationary expectations on the bond market. The following graph shows the market for loanable funds in the U.S. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line...

Q1: Demand in a market is represented by Q = 500 – 50P where P is...

Q1: Demand in a market is represented by Q = 500 – 50P where P is measured in dollars per unit and Q is measured in units per week. Note: Demand in this question is identical to that in Q1 of Assignment #10. a) Complete the following table. Find elasticity between $10 and $8, between $8 and $6, between $6 and $4, between $4 and $2, and between $2 and $0. Show elasticity to two decimal places. Do not round...

Subjects