Suppose that the Canadian economy is currently in an economic boom. a. Construct a diagram and...
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Suppose that the Canadian economy is currently in an economic boom. a. Construct a diagram and labelled it Diagram 2. For the graph, show each of the following components: short run aggregate supply curve, long run aggregate supply curve, and aggregate demand curve, labelled as SRAS₁, LRAS, and AD, i. current equilibrium real GDP and price level, labelled as Y, and P₁, and denoted as point A b. Suppose that there is an appreciation of the Canadian dollar. On Diagram 2, show how the events will affect each of the following: short run aggregate supply curve, long run aggregate supply curve, and aggregate demand curve, labelled as SRAS2, LRAS2, and AD₂ iv. new equilibrium real GDP and price level, labelled as Y2₂ and P2, and denoted as point B On Diagram 2, show how the automatic wage adjustment will affect each of the following: short run aggregate supply curve, long run aggregate supply curve, and aggregate demand curve, labelled as SRAS), LRASS, and AD real GDP and price level, labelled as Ys and Ps. and denoted as point C V. vi. Suppose that the Canadian economy is currently in an economic boom. a. Construct a diagram and labelled it Diagram 2. For the graph, show each of the following components: short run aggregate supply curve, long run aggregate supply curve, and aggregate demand curve, labelled as SRAS₁, LRAS, and AD, i. current equilibrium real GDP and price level, labelled as Y, and P₁, and denoted as point A b. Suppose that there is an appreciation of the Canadian dollar. On Diagram 2, show how the events will affect each of the following: short run aggregate supply curve, long run aggregate supply curve, and aggregate demand curve, labelled as SRAS2, LRAS2, and AD₂ iv. new equilibrium real GDP and price level, labelled as Y2₂ and P2, and denoted as point B On Diagram 2, show how the automatic wage adjustment will affect each of the following: short run aggregate supply curve, long run aggregate supply curve, and aggregate demand curve, labelled as SRAS), LRASS, and AD real GDP and price level, labelled as Ys and Ps. and denoted as point C V. vi.
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P 4AAM P K Diagram 2 1 in diagram a shows the initial short run aggregate supply curve SRAS Long run ... View the full answer
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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