An article on Reuters discussing a Reserve Bank of India (RBI) monetary policy meeting in early...

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An article on Reuters discussing a Reserve Bank of India (RBI) monetary policy meeting in early 2017 stated that the RBI "changed its stance to 'neutral from 'accommodative,' saying it would monitor inflation. The article noted that the decision to hold [the interest rate that is the RBI's equivalent of the federal funds rate constant is a risk, as private forecasts are more pessimistic [about economic growth] than the RBI Source: Suvashree Dey Choudhury and Rafael Nam, "Indian Central Bank Keeps Policy Rate on Hold, With Eyes on Inflation, reuters.com, February 8, 2017. Draw a dynamic aggregate demand and aggregate supply graph to show where the RBI expected real GDP to be relative to potential GDP in 2017 if a kept its target interest unchanged Assume for simplicity that real GDP in India in 2016 equaled potential GDP. Assume the economy is initially in long-run equilibrium at e, in 2016. 1) Using the line drawing tool, show the effect of growth between 2016 and 2017 if the RB's expectations are correct by drawing a new long-run aggregate supply curve for 2017 Label your curve LRAS, 2) Using the line drawing tool, show the effect of growth between 2016 and 2017 if the RBI's expectations are correct by drawing a new short-run aggregate supply curve for 2017 Label your curve 'SRAS, 3) Using the ine drawing tool, show the effect of growth between 2016 and 2017 if the RBI's expectations are correct by drawing a new aggregate demand curve for 2017 Label your curve 'AD, 4) Uang the point drawing foot, identify the equilibrium for 2017 Label your point 'e P Price level Q SRAS LRAS, a AD Real GDP An article on Reuters discussing a Reserve Bank of India (RBI) monetary policy meeting in early 2017 stated that the RBI "changed its stance to 'neutral from 'accommodative,' saying it would monitor inflation. The article noted that the decision to hold [the interest rate that is the RBI's equivalent of the federal funds rate constant is a risk, as private forecasts are more pessimistic [about economic growth] than the RBI Source: Suvashree Dey Choudhury and Rafael Nam, "Indian Central Bank Keeps Policy Rate on Hold, With Eyes on Inflation, reuters.com, February 8, 2017. Draw a dynamic aggregate demand and aggregate supply graph to show where the RBI expected real GDP to be relative to potential GDP in 2017 if a kept its target interest unchanged Assume for simplicity that real GDP in India in 2016 equaled potential GDP. Assume the economy is initially in long-run equilibrium at e, in 2016. 1) Using the line drawing tool, show the effect of growth between 2016 and 2017 if the RB's expectations are correct by drawing a new long-run aggregate supply curve for 2017 Label your curve LRAS, 2) Using the line drawing tool, show the effect of growth between 2016 and 2017 if the RBI's expectations are correct by drawing a new short-run aggregate supply curve for 2017 Label your curve 'SRAS, 3) Using the ine drawing tool, show the effect of growth between 2016 and 2017 if the RBI's expectations are correct by drawing a new aggregate demand curve for 2017 Label your curve 'AD, 4) Uang the point drawing foot, identify the equilibrium for 2017 Label your point 'e P Price level Q SRAS LRAS, a AD Real GDP