Graphically illustrate and explain the effects of an increase in
the saving rate on the Solow growth model. In your answer, you must
clearly label all curves and the initial and final equilibria. In
your answer, explain what happens to the rate of growth of output
per worker and the rate of growth of output as the economy adjusts
to this increase in the saving rate.
Illustrate graphically an aggregate demand/aggregate supply of
an economy in a recessionary situation. Show the GDP gap
graphically. How can the Federal help close the recessionary gap
moving the economy back toward full employment using monetary
policy? Account for the role of the money supplier in the answer.
Graphically show the prescription chosen. What is the potential
impact on interest rates, budget deficit and trade deficit if
applicable? Explain your answer.
Use the aggregate demand–aggregate supply model to illustrate
graphically the impact in the short run and the long run of the
following changes. Be sure to label: i. the axes; ii. the curves;
iii. the initial equilibrium values; iv. the direction the curves
shift; v. the short-run equilibrium values; and vi. the long-run
equilibrium values. Also, state in words what happens to prices and
output in the short run and the long run.
ii) Climate change causes an increase in...
Explain and graphically illustrate the impact of
COVID-19 on consumer spending and aggregate demand using at least
two (2) determinants of consumer spending.
A high-quality response must include the steps leading up to the
change in the determinate. For example, if I were to make the claim
that consumer debt increased, I would have to first explain how I
moved from COVID-19 to a rise in consumer debt, and then trace out
the effects on consumer spending and aggregate
Explain and graphically
illustrate the impact of COVID-19 on investment spending
and aggregate demand using at least one (1) of the
determinants of investment spending.
A high-quality response must include the steps leading up to the
change in the determinant. For example, if I were to make the claim
that business taxes increased, I would have to first explain how I
moved from COVID-19 to a rise in business taxes, and then trace out
the effects on investment spending and...
Graphically illustrate the best response functions and best
response equilibrium for the case of a duopoly, if each of the
firms faces a horizontal marginal cost function.
30. An increase in household saving causes consumption to
A. rise and aggregate demand to increase.
B. rise and aggregate demand to decrease.
C. fall and aggregate demand to increase.
D. fall and aggregate demand to decrease.
35. Which of the following Fed actions would both decrease the
money supply?
A. buy bonds and raise the reserve requirement
B. buy bonds and lower the reserve requirement
C. sell bonds and raise the reserve requirement
D. sell bonds and lower the...