1 List the determinants of aggregate demand in the textbox below. (Check lesson 3.03 for help.) . Fon Font t Famil Siz y e 2 List the determinants of short-run aggregate supply in the textbox below. (Check lesson 3.02 for help.) . Fon Font t Famil Siz y e 3 For the question below, write an explanation of the short-run effect (including the determinant of AD or AS . that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the impact on output and price level (increase or decrease) and submit a properly drawn and labeled aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment number are written on each page of graphs you submit. All text must be written in the text box provided. An economic crisis increases the degree of excess capacity in a nation. Fon Font t Famil Siz y e 4 For the question below, write an explanation of the short-run effect (including the determinant of AD or AS . that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the impact on output and price level (increase or decrease) and submit a properly drawn and labeled aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment number are written on each page of graphs you submit. All text must be written in the text box provided. Congress passes a sweeping health care reform bill that provides free medical insurance for all Americans. Once the President signs it into law, the government will provide every American with a policy that will pay up to 80% of every medical bill a patient incurs. This change does not impact consumer income. Fon Font t Famil Siz y e 5. P1Y1 in this economy reflects that there is an inflationary gap with high employment. an inflationary gap with low employment. a recessionary gap with high employment. a recessionary gap with low employment. long-run equilibrium in this economy. 6. At P1Y1, if taxes decrease then consumer spending will decrease and AD will shift right to long-run equilibrium. decrease and AD will shift left to long-run equilibrium. increase and AD will shift right to long-run equilibrium. increase and AD will shift left to long-run equilibrium. cannot be determine with information given. 7. If workers are more educated, then short-run aggregate supply will increase and output and price level will increase as well. decrease and output and price level will decrease as well. increase and output will increase but price level will decrease. increase and output will decrease but price level will increase. decrease and output will decrease but price level will increase. 8. If Congress increases personal and business taxes to decrease the national debt, then output and price level will increase. output will increase and price level will be indeterminate.



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1
List the determinants of aggregate demand in the textbox below. (Check lesson 3.03 for help.)
.
Fon
Font
t
Famil
Siz
y
e
2
List the determinants of short-run aggregate supply in the textbox below. (Check lesson 3.02 for help.)
.
Fon
Font
t
Famil
Siz
y
e
3 For the question below, write an explanation of the short-run effect (including the determinant of AD or AS
. that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the
impact on output and price level (increase or decrease) and submit a properly drawn and labeled
aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment
number are written on each page of graphs you submit. All text must be written in the text box provided.
An economic crisis increases the degree of excess capacity in a nation.
Fon
Font
t
Famil
Siz
y
e
4 For the question below, write an explanation of the short-run effect (including the determinant of AD or AS
. that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the
impact on output and price level (increase or decrease) and submit a properly drawn and labeled
aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment
number are written on each page of graphs you submit. All text must be written in the text box provided.
Congress passes a sweeping health care reform bill that provides free medical insurance for all Americans.
Once the President signs it into law, the government will provide every American with a policy that will pay
up to 80% of every medical bill a patient incurs. This change does not impact consumer income.
Fon
Font
t
Famil
Siz
y
e
5. P1Y1 in this economy reflects that there is
an inflationary gap with high employment.
an inflationary gap with low employment.
a recessionary gap with high employment. a recessionary gap with low employment.
long-run equilibrium in this economy.
6. At P1Y1, if taxes decrease then consumer spending will
decrease and AD will shift right to long-run equilibrium.
decrease and AD will shift left to long-run equilibrium.
increase and AD will shift right to long-run equilibrium.
increase and AD will shift left to long-run equilibrium.
cannot be determine with information given.
7. If workers are more educated, then short-run aggregate supply will
increase and output and price level will increase as well.
decrease and output and price level will decrease as well.
increase and output will increase but price level will decrease.
increase and output will decrease but price level will increase.
decrease and output will decrease but price level will increase.
8. If Congress increases personal and business taxes to decrease the national debt, then
output and price level will increase.
output will increase and price level will be indeterminate.1
List the determinants of aggregate demand in the textbox below. (Check lesson 3.03 for help.)
.
Fon
Font
t
Famil
Siz
y
e
2
List the determinants of short-run aggregate supply in the textbox below. (Check lesson 3.02 for help.)
.
Fon
Font
t
Famil
Siz
y
e
3 For the question below, write an explanation of the short-run effect (including the determinant of AD or AS
. that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the
impact on output and price level (increase or decrease) and submit a properly drawn and labeled
aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment
number are written on each page of graphs you submit. All text must be written in the text box provided.
An economic crisis increases the degree of excess capacity in a nation.
Fon
Font
t
Famil
Siz
y
e
4 For the question below, write an explanation of the short-run effect (including the determinant of AD or AS
. that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the
impact on output and price level (increase or decrease) and submit a properly drawn and labeled
aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment
number are written on each page of graphs you submit. All text must be written in the text box provided.
Congress passes a sweeping health care reform bill that provides free medical insurance for all Americans.
Once the President signs it into law, the government will provide every American with a policy that will pay
up to 80% of every medical bill a patient incurs. This change does not impact consumer income.
Fon
Font
t
Famil
Siz
y
e
5. P1Y1 in this economy reflects that there is
an inflationary gap with high employment.
an inflationary gap with low employment.
a recessionary gap with high employment. a recessionary gap with low employment.
long-run equilibrium in this economy.
6. At P1Y1, if taxes decrease then consumer spending will
decrease and AD will shift right to long-run equilibrium.
decrease and AD will shift left to long-run equilibrium.
increase and AD will shift right to long-run equilibrium.
increase and AD will shift left to long-run equilibrium.
cannot be determine with information given.
7. If workers are more educated, then short-run aggregate supply will
increase and output and price level will increase as well.
decrease and output and price level will decrease as well.
increase and output will increase but price level will decrease.
increase and output will decrease but price level will increase.
decrease and output will decrease but price level will increase.
8. If Congress increases personal and business taxes to decrease the national debt, then
output and price level will increase.
output will increase and price level will be indeterminate.help.)
.
Fon
Font
t
Famil
Siz
y
e
2
List the determinants of short-run aggregate supply in the textbox below. (Check lesson 3.02 for help.)
.
Fon
Font
t
Famil
Siz
y
e
3 For the question below, write an explanation of the short-run effect (including the determinant of AD or AS
. that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the
impact on output and price level (increase or decrease) and submit a properly drawn and labeled
aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment
number are written on each page of graphs you submit. All text must be written in the text box provided.
An economic crisis increases the degree of excess capacity in a nation.
Fon
Font
t
Famil
Siz
y
e
4 For the question below, write an explanation of the short-run effect (including the determinant of AD or AS
. that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the
impact on output and price level (increase or decrease) and submit a properly drawn and labeled
aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment
number are written on each page of graphs you submit. All text must be written in the text box provided.
Congress passes a sweeping health care reform bill that provides free medical insurance for all Americans.
Once the President signs it into law, the government will provide every American with a policy that will pay
up to 80% of every medical bill a patient incurs. This change does not impact consumer income.
Fon
Font
t
Famil
Siz
y
e
5. P1Y1 in this economy reflects that there is
an inflationary gap with high employment.
an inflationary gap with low employment.
a recessionary gap with high employment. a recessionary gap with low employment.
long-run equilibrium in this economy.
6. At P1Y1, if taxes decrease then consumer spending will
decrease and AD will shift right to long-run equilibrium.
decrease and AD will shift left to long-run equilibrium.
increase and AD will shift right to long-run equilibrium.
increase and AD will shift left to long-run equilibrium.
cannot be determine with information given.
7. If workers are more educated, then short-run aggregate supply will
increase and output and price level will increase as well.
decrease and output and price level will decrease as well.
increase and output will increase but price level will decrease.
increase and output will decrease but price level will increase.
decrease and output will decrease but price level will increase.
8. If Congress increases personal and business taxes to decrease the national debt, then
output and price level will increase.
output will increase and price level will be indeterminate.



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