Question: 6. Using AS and AD analysis, explain what effects, if any, the following changes have on each nation's GDP Price Index and real GDP. Explain

6. Using AS and AD analysis, explain what effects, if any, the following changes have on each nation's GDP Price Index and real GDP. Explain your answer and draw the appropriate supply and demand graphs (use the PPT-based graphing tool posted near the top of our course page). a. United States: A cold snap hits the southern part of the United States and destroys 25% of the crops. b. China: The People's Bank of China, which is China's central bank, tightens monetary policy. c. Greece: The Greek government's budget deficit is reduced drastically in order to meet the bailout conditions of the European Monetary Union and International Monetary Fund. d. Japan: Japan's saving rate falls due to the nation's aging population. e. United States: Turmoil between Iraq and Iran causes a sharp increase in the price of oil.

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