Graph and explain each of the following
C. Suppose CT Resident Glenn Beck leads a Tea Party Revolution causing political instability in the U.S. spooking investors. 1. Show the pre-spooking equilibrium in the market for foreign currency exchange, label it "A." 2. Show the impact of the spooking in the same model and label it "B." a. Show what happens to domestic interest rates? b. Show what happens to the value of the American dollar? 3. Show the impact of Net Exports on the American model of the Macro- Economy 4. Assuming American citizens did not expect any changes, show the impact on short run inflation and unemployment. 5. Then explain the impact on long run inflation and unemployment a. Discuss this readjustment using Sticky wages and price theory. C. Suppose CT Resident Glenn Beck leads a Tea Party Revolution causing political instability in the U.S., spooking investors. 1. Show the pre-spooking equilibrium in the market for foreign currency exchange, label it A. 2. Show the impact of the spooking in the same model and label it "B." a. Show what happens to domestic interest rates? b. Show what happens to the value of the American dollar? 3. Show the impact of Net Exports on the American model of the Macro- Economy. 4. Assuming American citizens did not expect any changes, show the impact on short run inflation and unemployment. C. Suppose CT Resident Glenn Beck leads a Tea Party Revolution causing political instability in the U.S. spooking investors. 1. Show the pre-spooking equilibrium in the market for foreign currency exchange, label it "A." 2. Show the impact of the spooking in the same model and label it "B." a. Show what happens to domestic interest rates? b. Show what happens to the value of the American dollar? 3. Show the impact of Net Exports on the American model of the Macro- Economy 4. Assuming American citizens did not expect any changes, show the impact on short run inflation and unemployment. 5. Then explain the impact on long run inflation and unemployment a. Discuss this readjustment using Sticky wages and price theory. C. Suppose CT Resident Glenn Beck leads a Tea Party Revolution causing political instability in the U.S., spooking investors. 1. Show the pre-spooking equilibrium in the market for foreign currency exchange, label it A. 2. Show the impact of the spooking in the same model and label it "B." a. Show what happens to domestic interest rates? b. Show what happens to the value of the American dollar? 3. Show the impact of Net Exports on the American model of the Macro- Economy. 4. Assuming American citizens did not expect any changes, show the impact on short run inflation and unemployment
