Suez Canal was blocked for about six days in March 2021 as Ever Given, one of...

 

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Suez Canal was blocked for about six days in March 2021 as Ever Given, one of the largest container ships in the world, was stuck in the canal bank. This 2021 Suez Canal obstruction greatly affects the supply chain industry. Let's assume that this event caused a negative supply shock to the economy immediately. 4.1 (1 point) In your opinion, should the shock be temporary or permanent? 4.2. (2 points) In your opinion, how does this accident affect the labor demand, labor supply, and labor market equilibrium (i.e., the related price and quantity) for Taiwan? [Hint: using a diagram to illustrate your results may be clearer] 4.3. (2 points) In your opinion, how does this accident affect savings, investments, and the goods market equilibrium (i.e., the related price and quantity) for Taiwan? 4.4. (6 points) Based on the IS-LM analysis, what is the short-run and long-run outcome on output based on your view stated in 4.1-4.3? F 4 a 5 a a e Suez Canal was blocked for about six days in March 2021 as Ever Given, one of the largest container ships in the world, was stuck in the canal bank. This 2021 Suez Canal obstruction greatly affects the supply chain industry. Let's assume that this event caused a negative supply shock to the economy immediately. 4.1 (1 point) In your opinion, should the shock be temporary or permanent? 4.2. (2 points) In your opinion, how does this accident affect the labor demand, labor supply, and labor market equilibrium (i.e., the related price and quantity) for Taiwan? [Hint: using a diagram to illustrate your results may be clearer] 4.3. (2 points) In your opinion, how does this accident affect savings, investments, and the goods market equilibrium (i.e., the related price and quantity) for Taiwan? 4.4. (6 points) Based on the IS-LM analysis, what is the short-run and long-run outcome on output based on your view stated in 4.1-4.3? F 4 a 5 a a e

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Answer 41 In my opinion the shock caused by the Suez Canal obstruction should be considered temporary While the event disrupted the supply chain indus... View the full answer