11. (06.02 MC) Use the graph to answer the question that follows. Price of U.S. dollars in terms of S euros P2 0 Number of U.S. dollars From the graph, at price P2, supply is greater than the demand. How will the price adjust in order to bring the exchange rate to its equilibrium? (1 point) In order to bring back the exchange rate to equilibrium, the exports should rise. The excess supply of dollars raises the price above P2 to bring back the equilibrium exchange rate. The government intervenes to adjust the price of the dollar in order to bring back the equilibrium exchange rate. The surplus created due to the excess supply of dollars can be balanced out by increasing the demand for dollars shifting the demand curve, D. O With the emergence of excess supply of dollars, the price of the dollar falls to price P, to bring back the equilibrium.22 (0405 MC) The graph below shows the changes in the money market due to an increase in the reserve requirement by the central bank. Nominal interest rate % 4. (01.06 HC) Use the graph to answer the question that follows. Price/$ p3 p1 p2 d2 0 q2 q1 93 Quantity Suppose the demand for beef in the market changed due to a sudden increase in chickens affected by bird flu in the country. Which point on the graph shows the new equilibrium price for beef? (1 point) P1 P1 - P3 OF P2 -P1 P310. (02.07 MC) Use the graph to answer the question that follows. Real GDP Actual real GDP Potential real GDP C D T5 Time Country 'P' is at point 'D' of the business cycle. As an economist, what steps would you suggest government authorities to take? (1 point) O Central bank should sell more bonds to the public Decrease government spending O Increase interest rates O Increase minimum wage from the equilibrium level of the wage rate O Raise government spendingUse the graph to answer the question that follows. Real interest rate % SIf O' D'If DIf q q' Quantity of loanable funds $ The graph shows a change in an economy after the government's decision to provide tax benefits to businesses in an effort to increase investment. What is the new point of equilibrium in the economy's loanable funds market? (1 point) O o OThe graph below shows a shift in the short-run Phillips curve {SRPCJ of an economy, due to an increase in input prices in the market. Ination % Unemployment rate % which of the following is true in this scenario? {1 point) 0 A negative demand shock caused the SRPC to shift to the left. and the new equilibrium ination rate will be 4%. O A negative supply shock caused the SRPC to shift to the right, and the new equilibrium inflation rate will be 5% O A negative supply shock caused the SRPC to shift to the right, and the new equilibrium inflation rate will be 4%. O A positive demand shock caused the SRPC to shift to the right, and the new equilibrium inflation rate will be 4%. O A positive supply shock caused the SRPC to shift to the left} and the new equilibrium inflation rate will be 5%