me graph shows the aggregate demand curve in a representative economy. uppose that there is increased confidence about the economy. Using the line drawing tool, show the effect on the aggregate demand curve, and label your new curve. Carefully follow the instructions above, and only draw the required objects.
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- The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with a period of six or more months of declining real gross domestic product (real GDP). Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as ________ (options: a recession, a business cycle, an expansion) True or False: Short-term fluctuations in real GDP are irregular and unpredictable. Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1958? Check all that apply.A. Industrial production declined.B. Consumer spending increased.C. The unemployment rate declined.D. Home sales declined.This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June, 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded a quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Question 4. Given the economic conditions described above, recommend the appropriate monetary policy that the Reserve Bank of Australia (RBA) should implement.Clearly explain why this type of monetary policy is needed. Question 5. Describe in details the steps the RBA must undertake to…Real-Time Data Analysis Exercise The following table shows the values for real potential GDP and real GDP for the past five years. *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Given this information, calculate the output gap for each year by calculating the percentage difference between real GDP and potential GDP. (Enter your responses as percents rounded to two decimal places. Include a minus sign if necessary.) Year 2018 2019 2020 2021 2022 Real Potential GDP ($ billions) 18,788 19,163 19,524 19,865 20,224 Real GDP ($ billions) 18,609 19,036 18,509 19,610 20,015 Output Gap (%)
- Question 5: Suppose you recently received the GDP numbers for the last quarter. When you calculated the change from the previous quarter, you observed the following: observed the following changes: Y ——> +1.5% C ——> +0.1% I ——> +3% G ——> +0.2% NX ——> unchanged How would you interpret each value in context with the whole of GDP? Is there anything in the data that is predictive (potentially) of future conditions? Question 6: You have a business that manufactures circuit boards for mobile phones. Suppose you received the GDP numbers for the quarter after those in problem 5: Y ——> +0.3% C ——> -2% I ——> +2.5% G ——> +0.2% NX ——> unchanged a. Using the data from both quarters (prob 5 and prob above), what do you expect is happening in the economy and what might this mean for your business? Explain why you came to this conclusion. b. What does this portend for the future of the economy (if anything) and how might you position your business given your…Question 5: Suppose you recently received the GDP numbers for the last quarter. When you calculated the change from the previous quarter, you observed the following: observed the following changes: Y ——> +1.5% C ——> +0.1% I ——> +3% G ——> +0.2% NX ——> unchanged How would you interpret each value in context with the whole of GDP? Is there anything in the data that is predictive (potentially) of future conditions?Intermediate Macroeconomic Question. 1.The following equations describe an economy. Y = C + I + G. C = 50+0.75 (Y-T). I = 150 – 10r. (M/P)d = Y – 50r. G = 250 T = 200. M = 3,000. P = 4 a. Identify each of the variables and briefly explain their meaning. b. From the above list, use the relevant set of equations to derive the IS curve. Graph the IS curve on an appropriately labeled graph. c. From the above list, use the relevant set of equations to derive the LM curve. Graph the LM curve on the same graph you used in part (b). d. What are the equilibrium level of income and the equilibrium interest rate? For any 2. Suppose that the money demand function is (M/P )d=800-50r, where r is the interest rate in percent. The money supply M is 2,000 and the price level P is fixed at 5. a. Graph the supply and demand for real money balances. b. What is the equilibrium interest rate?
- Suppose the relationship between the government's tax revenue (T) and national income (Y) is represented by the equation T=10+0.25Y. Plot this relationship on a scale diagram, with Y on the horizontal axis and T on the vertical axis. Interpret the equation.This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Required: Question 1. Clearly explain what Real GDP per capita means.Clearly explain why Real GDP per capita decreased whereas there was still growth in Real GDP for the quarter ending June 2019. Question 2. Given the economic conditions described above, predict how the following key…This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Question: Draw appropriate graph(s) to illustrate the Australian economy in June 2019, considering the previously described economic conditions.
- This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Questions: Question 4. Given the economic conditions described above, recommend the appropriate monetary policy that the Reserve Bank of Australia (RBA) should implement.Clearly explain why this type of monetary policy is needed. Question 5. Describe in detail the steps the RBA must…(b) Assume that household income increases as a result of recent economic prosperity in Country X. On your graph in part (a), show the effect of the increase in household income on real output and the price level.George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Resin Productivity Change if necessary). The productivity change for each of the inputs (Labor, Resin, Capital, and Energy) is: Labor Productivity Change = if necessary). = Units Produced Labor (hours) Resin (pounds) Capital Invested ($) Energy (BTU) Last Year 1,200 300 60 10,000 2,900 Energy Productivity Change = if necessary). Now 1,200 250 46 11,000 2,750 % (enter your response as a percentage rounded to two decimal places and include a minus sign % (enter your response as a percentage rounded to two decimal places and include a minus sign Capital Invested…