For the following scenario draw an AD/AS graph at full employment Label AD, SRAS, LRAS, PL,...

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For the following scenario draw an AD/AS graph at full employment Label AD, SRAS, LRAS, PL, Y and the full-employment level of output (YE) on the graph. Then show the change on the graph as described in the scenario. Labeling the change with either (ADI) or (SRAS1), (PL1) and (Y1). Also draw a loanable funds market graph. Label Dlf, Slf, RIR, Qlf. Then show the change on the graph as described in the scenario. Labeling the change with either (Dlfl) or (Slf1), (rirl) and (Qlfl). 5. Assume fiscal policy is expansionary and the government funds the resulting deficit through borrowing. Shift one curve in each graph to illustrate the effect of the fiscal policy, and label the new equilibrium values as stated above 6. How will the change in the equilibrium interest rate in the loanable funds market affect the short-run aggregate supply (SRAS) curve in the long run? Show on the AS/AD graph above, and explain. For the following scenario draw an AD/AS graph at full employment Label AD, SRAS, LRAS, PL, Y and the full-employment level of output (YE) on the graph. Then show the change on the graph as described in the scenario. Labeling the change with either (ADI) or (SRAS1), (PL1) and (Y1). Also draw a loanable funds market graph. Label Dlf, Slf, RIR, Qlf. Then show the change on the graph as described in the scenario. Labeling the change with either (Dlfl) or (Slf1), (rirl) and (Qlfl). 5. Assume fiscal policy is expansionary and the government funds the resulting deficit through borrowing. Shift one curve in each graph to illustrate the effect of the fiscal policy, and label the new equilibrium values as stated above 6. How will the change in the equilibrium interest rate in the loanable funds market affect the short-run aggregate supply (SRAS) curve in the long run? Show on the AS/AD graph above, and explain.

Answer rating: 100% (QA)

The instructions youve provided are for drawing an Aggregate DemandAggregate Supply ADAS graph and a loanable funds market graph to illustrate the imp... View the full answer