Question
Help me answer the following questions referring to the image.1. If the Short-Run Macroeconomic Equilibrium is at point I, the economy isproducing (MORE THAN/ LESS
Help me answer the following questions referring to the image.1. If the Short-Run Macroeconomic Equilibrium is at point I, the economy isproducing (MORE THAN/ LESS THAN) full employment output. The actual unemployment rate is (MORE THAN/ LESS THAN) the natural rate of unemployment.2. Suppose the economy starts at point E. If congress increases government spending, assuming there is no additional policy shock after the initial government spending shock, the eventual short-run equilibrium will be...(answer needed) ..the eventual long-run equilibrium will be.....(answer needed and why?)3. Suppose another economy starts at point E. Suppose OPEC cuts down oil production, causing a large increase in oil prices. The eventual short-run equilibrium will be .....( answer needed) and the eventual long-run equilibrium will be....(answer needed) and why ?4. Why does the short-run aggregate supply curve have a positive slope?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started