B 2.1 Reading - 4SP2021 Appl Mc X VitalSource Bookshelf: Macroe( X B 2.4 Assignment: Study Plan Prc X G 2.4 Macroecon Course Hero X + C bookshelf. vitalsource.com/#/books/9780134789231/cfi/6/240!/4/2/10/2/2@0:96.3 Use the following graph to work Problems 6 to 8. D Initially, the short-run aggregate supply curve is SAS, and the aggregate demand curve is Q ADo LAS SAS, Price level 115 SAS 110 D 105 A C 100 B 95 AD1 ADO O 0.8 1.0 1.2B 2.1 Reading - 4SP2021 Appl Mc X VitalSource Bookshelf: Macroe( X B 2.4 Assignment: Study Plan Prc X G 2.4 Macroecon Course Hero X + C bookshelf.vitalsource.com/#/books/9780134789231/cfi/6/240!/4/2/10/8/2@0:39.5 GA 100 B Q 95 AD1 ADO O 0.8 1.0 1.2 Real GDP (trillions of 2009 dollars) 6. Some events change aggregate demand from ADo to AD1. Describe two events that could have created this change in aggregate demand. What is the equilibrium after aggregate demand changed? If potential GDP is $1 trillion, the economy is at what type of macroeconomic equilibrium? 7. Some events change aggregate supply from SASo to SAS1. Describe two events that could have created this change in aggregate supply. What is the equilibrium after aggregate supply changed? If potential GDP is $1 trillion, does the economy have an inflationary gap, a recessionary gap, or no output gap? 8. Some events change aggregate demand from ADo to AD, and aggregate supply from SASo to SAS1. What is the new macroeconomic equilibrium? 2.1 Reading-ASPZOZ'I Aple X n VitalSource Bookshelf: Macroc X 2.4 Assignment: Study Plan Pr X I G 2.4 Macroecon x I u Course Here X l + C i bookshelf.vitaIsource.com/#lbooks/9780134789231/cfi/6/242!/4/2/10/28/8/2/2@0:31.2 111' e I . A 1' u .7 u '7' ,, , .4 u' role in the business cycle. 23. Fed Raises Rates As Job Gains, Firming Ination Stoke Condence The US. Federal Reserve raised interest rates on Wednesday. The rate rise was the second in three months. This second rise comes in an economy that is growing faster and creating jobs at a more rapid pace. These gains are accompanied by a rising ination rate. Source: Reuters, March 15, 2017 a. Describe the process by which the Fed's action reported in the news clip ows through the economy. b. Draw a graph to illustrate the state of the economy that prompted the Fed to take the action described in the news clip. c. Draw a graph to illustrate the Fed's action and its effect. Macroeconomic Schools of Thought 24. Cut Taxes and Boost Spending? Raise Taxes and Cut Spending? Cut Taxes and Cut Spending? This headline expresses three views about what to do to get the US. economy growing more rapidly and contribute to closing the recessionary gap. Economists from which macroeconomic school of thought would recommend pursuing policies described by each of these views? We've updated our read aloud feature! Gwen a try here @Aa4))-;7F39