Hello I have an economics math graphing based question, and I have provided the question via image. I need help Because Keynesians believe that prices (increased or are fixed?) and in the region of the supply curve leading up to potential GDP, their conception of aggregate supply is best represented by the curve labeled (ASa or ASb?). I'm also having difficulty where to plot assuming that the Keynesian model is correct, use the black line labeled New AD1 (X symbols) to draw the new aggregate demand curve that would restore potential output and assuming that aggregate supply is more accurately represented by the other curve, and use the red line labeled AD2 (cross symbols) to draw the new aggregate demand curve that would restore potential GDP. Finally, You can see that if prices are increasing in the region leading up to potential output, the shift in aggregate demand needed to restore potential GDP is (less or greater?) than if the price level remains constant in this region. Because it is (unrealistic or unlikely?)that prices will not rise along with expenditures in this region, the Keynesian model (accurately estimates or overestimates or underestimates?) Here are the images below the answers highlighted are the ones I chose to most of them could they be fixed?
1. The Keynesian SRAS curve The following graph presents an aggregate demand curve and two potential aggregate supply curves. Potential output for this economy occurs at a real GDP of $6 billion. Because Keynesians believe that prices in the region of the supply curve leading up to potential GDP, their conception of aggregate supply is best represented by the curve labeled (? AS a ASp 130 AD + New AD1 120 110 New AD2 PRICE LEVEL 100 90 80 2 4 8 10 REAL GDP (Billions of dollars)1. The Keynesian SRAS curve The following graph presents an aggregate demand curve and two potential aggregate supply curves. Potential output for this economy occurs at a real GDP of $6 billion. Because Keynesians believe that prices V in the region of the supply curve leading up to potential GDP, their conception of aggregate increase supply is best represented by the curve are fixed AS AS 130 a b AD + 120 New AD1 n d 110 New AD2 > LIJ _l LIJ Q E 100 90 80 0 2 4 6 8 10 REAL GDP (Billions of dollars) 1. The Keynesian SRAS curve The following graph presents an aggregate demand curve and two potential aggregate supply curves. Potential output for this economy occurs at a real GDP of $6 billion. Because Keynesians believe that prices V in the region of the supply curve leading up to potential GDP, their conception of aggregate supply is best represented by the curve labeled V AS AS 130 a b AD 4 120 New AD1 n d 110 New AD2 > L|.| _l LIJ Q E 100 90 80 0 2 4 6 8 10 REAL GDP (Billions of dollars) Assuming that the Keynesian model is correct, use the black line labeled New AD1 (X symbols) to draw the new aggregate demand curve that would restore potential output. (Note: The new curve must be drawn parallel to the original aggregate demand curve.) Now, assume that aggregate supply is more accurately represented by the other curve, and use the red line labeled AD2 (cross symbols) to draw the new aggregate demand curve that would restore potential GDP. (Note: The new curve must be drawn parallel to the original aggregate demand curve.) You can see that if prices are increasing in the region leading up to potential output, the shift in aggregate demand needed to restore potential GDP is V than if the price level remains constant in this region. Because it is V that prices will not rise along with expenditures in this region, the Keynesian model V the amount of new spending necessary to restore potential output. Assuming that the Keynesian model is correct, use the black line labeled New ADl (X symbols) to draw the new aggregate demand curve that would restore potential output. (Note: The new curve must be drawn parallel to the original aggregate demand curve.) Now, assume that aggregate supply is more accurately represented by the other curve, and use the red line labeled AD2 (cross symbols) to draw the - . . n . --ate demand curve that would restore potential GDP. (Note: The new curve must be drawn parallel to the original aggregate demand - that if prices are increasing in the region leading up to potential output, the shift in aggregate demand needed to restore potential GDP is V than if the price level remains constant in this region. Because it is V that prices will not rise along with expenditures in this region, the Keynesian model V the amount of new spending necessary to restore potential output. Assuming that the Keynesian model is correct, use the black line labeled New ADl (X symbols) to draw the new aggregate demand curve that would restore potential output. (Note: The new curve must be drawn parallel to the original aggregate demand curve.) Now, assume that aggregate supply is more accurately represented by the other curve, and use the red line labeled AD2 (cross symbols) to draw the new aggregate demand curve th- -I GDP. (Note: The new curve must be drawn parallel to the original aggregate demand accurately estimates curve.) overestimates You can see that if prices are inc ing up to potential output, the shift in aggregate demand needed to restore potential GDP is underestimates V than if the price le his region. Because it is V that prices will not rise along with expenditures in this region, the Keynesian model V the amount of new spending necessary to restore potential output. Assuming that the Keynesian model is correct, use the black line labeled New ADl (X symbols) to draw the new aggregate demand curve that would restore potential output. (Note: The new curve must be drawn parallel to the original aggregate demand curve.) Now, assume that aggregate supply is more accurately represented by the other curve, and use the red line labeled AD2 (cross symbols) to draw the new aggregate demand curve that would restore potential GDP. (Note: The new c drawn parallel to the original aggregate demand curve.) likely You can see that if prices are increasing in the region leading up to potential outp aggregate demand needed to restore potential GDP is V than if the price level remains constant in this region. Because it is V that prices will not rise along with expenditures in this region, the Keynesian model V the amount of new spending necessary to restore potential output
