I want the answers with explanation..

1- Read and understandChapter 16 PowerPoint.pptxActions https://1drv.ms/p/s!Ah64mhUsYjvJgkbxJcQGSzT-tyNS

and review slides 46-50.Remember all PowerPoints, Lectures outline and practice quizzes can be found under Modules in theChapter 16 Resourcespage.

2- Watch the two videos underChapter 16 Videosin Modules under Objective 10.5 and listed below.

Using the concepts learned in Chapter 16, read the scenarios below and answer the missing pieces to each question.I amnotgoing to ask you to draw the amount of money demanded and supplied, investment demand and aggregate demand and supply graphs for this forum.But I would highly recommend that you know how to draw these shifts - refer to figure 16.5 in your textbook as a reference to these graphs.

Please post your replyby Thursdayand respond to two other studentsby Saturday.

Scenario #1

U.S. was at macro equilibrium and full-employment Qf and P1.The U.S. goes to war, government spending increases.

• Which way will aggregate demand move? ___________(increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• If the fed uses OMOs, they must_____(buy or sell) bonds to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #2

U.S. was at macro equilibrium and full-employment Qf and P1.The U.S. stock market crashes.

• Which way will aggregate demand move? ___________(increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• If the fed uses OMOs, they must_____ (buy or sell) bonds to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #3

U.S. was at macro equilibrium and full-employment Qf and P1.The trading partners of the U.S. are experiencing a recession and stop buying goods from the United States.

• Which way will aggregate demand move? ___________ (increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• The fed must __________ (increase or decrease) the discount rate to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #4

U.S. was at macro equilibrium and full-employment Qf and P1.U.S. citizens are optimistic about the future and have expectations of higher future incomes.

• Which way will aggregate demand move? ___________ (increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• The fed must __________ (increase or decrease) the discount rate to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #5

U.S. was at macro equilibrium and full-employment Qf and P1.U.S. experiences several catastrophic events all at once across the U.S. such as tornadoes, hurricanes and earthquakes.

• Which way will aggregate demand move? ___________ (increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• The fed must __________ (increase or decrease) the reserve ratio to fix these macro problem(s) and get aggregate demand back to Full-Employment.

Scenario #6

U.S. was at macro equilibrium and full-employment Qf and P1.U.S. negotiates a new favorable trade agreement with the European Union.

• Which way will aggregate demand move? ___________ (increase or decrease)
• What macro economic problem arises __________(e.g. unemployment, inflation, slow growth)
• The fed must __________ (increase or decrease) the reserve ratio to fix these macro problem(s) and get aggregate demand back to Full-Employment.