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Hi! Here are macroeconomic problems I am having trouble. Questions are in the picture. Suppose that the United States government implements a fiscal policy that

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Hi! Here are macroeconomic problems I am having trouble. Questions are in the picture.

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Suppose that the United States government implements a fiscal policy that increases the budget surplus. (a) Draw a correctly labeled graph of the loanable funds market and show the effect of the increase in the budget surplus on the equilibrium real interest rate. (b) The European Union is a major trading partner of the United States. Given your answer in part (a) about the real interest rate, will the United States dollar appreciate or depreciate against the euro? Explain. (c) Suppose that the Federal Reserve, the central bank of the United States, decides to offset the change in the value of the dollar identified in part (b). (i) Would the Federal Reserve buy or sell the euro? (ii) Would the Federal Reserve buy or sell the dollar? (d) Suppose that the Federal Reserve wants to counteract the real interest rate change identified in part (a). What open-market operation would the Federal Reserve use?Price of Quantity of Price of Quantity of Time Apples Apples Oranges Oranges Year 1 4 15 10 4 Year 2 6 10 5 20 . The table above shows data for the economy of Fruitland, which produces two goods, apples and oranges. (a) Calculate the nominal gross domestic product (GDP) for year 2. (b) Using year 1 as the base year, calculate real GDP for year 2. (c) Calculate the GDP deflator for year 2. (d) Assuming the market basket is composed of the quantities in year 1, calculate the consumer price index (CPI) for year 2. (e) Suppose apple and orange pickers received a 2 percent increase in their wages. Based on your answer to part (d), would real wages d apple and orange pickers increase, decrease, or stay the same from year 1 to year 2 ? Explain

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