Draw a basic AD and SRAS graph (with LRAS constant) that shows the economy in the...

 

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Draw a basic AD and SRAS graph (with LRAS constant) that shows the economy in the long-run equilibrium. Suppose that the war between Ukraine and Russia sharply increased the price of petroleum, causing the unit cost per output in the economy to increase. ***If you have any trouble to draw a graph, you can answer the question without a graph. If then, your answer should include all the necessary steps, not just the final outcome. a. Using the AD-AS model, briefly analyze the short-run effects of the war on equilibrium real GDP and the price level, either with a AD-AS diagram or without a diagram. (3pts) b. What are two potential economic problems in the short run caused by the war? Do you think the Fed's monetary policies can solve these problems? Why or why not? Briefly discuss your reasoning using the AD and AS diagram. (3pts) Draw a basic AD and SRAS graph (with LRAS constant) that shows the economy in the long-run equilibrium. Suppose that the war between Ukraine and Russia sharply increased the price of petroleum, causing the unit cost per output in the economy to increase. ***If you have any trouble to draw a graph, you can answer the question without a graph. If then, your answer should include all the necessary steps, not just the final outcome. a. Using the AD-AS model, briefly analyze the short-run effects of the war on equilibrium real GDP and the price level, either with a AD-AS diagram or without a diagram. (3pts) b. What are two potential economic problems in the short run caused by the war? Do you think the Fed's monetary policies can solve these problems? Why or why not? Briefly discuss your reasoning using the AD and AS diagram. (3pts)

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a Using the ADAS model analyze the shortrun effects of the war on equilibrium real GDP and the price level without a diagram The war between Ukraine a... View the full answer