Question: 1. Describe the effects when planned aggregate expenditure is not in equilibrium with actual GDP. 2. Describe and provide examples of the 3 types of

1. Describe the effects when planned aggregate expenditure is not in equilibrium with actual GDP. 2. Describe and provide examples of the 3 types of unemployment.

3. Explain the difference between the unemployment rate and the labor force participation rate. 4. Provide a potential explanation for the changes in aggregate demand as a result of inflation.

5. Provide an example of a price ceiling and a price floor. What is the effect of a price ceiling when it is below the point of market equilibrium?

6. A system is said to be in equilibrium when the price intersects our supply and demand lines. Graph the impact of a negative supply shock, such as the supply of available oil decreasing, to a system that is currently in equilibrium. What will the initial market conditions be? What will occur to re-establish equilibrium?

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