Question
Imagine that in the year 2025, China's economy increases significantly, causing an increase in demand for U.S. exports. Use the ADAS model to explain the
Imagine that in the year 2025, China's economy increases significantly, causing an increase in demand for U.S. exports.
Use the ADAS model to explain the likely short run impacts on U.S. GDP and the aggregate price level. What do you anticipate to happen to U.S. consumption expenditures and U.S. employment? Explain your reasoning for each of your predictions and show graphically as appropriate.
This is the question I received, and while I have graphed the impact on GDP and price level, my rubric is saying to also graphically show the consumption expenditures and unemployment. I'm a tad confused on how to do that. How do I graph the change in consumption expenditures and US unemployment?
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