Question
In the context of the basic macroeconomic model developed in class, analyze the impact of each of the following economic changes (ceteribus paribus) on domestic
In the context of the basic macroeconomic model developed in class, analyze the impact of each of the following economic changes(ceteribus paribus)on domestic real GDP, inflation, the unemployment rate, and the budget deficit.Be sure to explain the relationships and linkages carefully. Illustrate your results using an aggregate demand- aggregate supply graph (separate graph for each change)
1) Household wealth rises as stock prices rebound 35 percent from March 23 lows.
2) Computer technology improves in the US thereby increasing labor productivity and lowering production costs in most businesses.
3) Oil prices continue to increase in international energy markets.
4) Personal income increases dramatically in March due to Biden's third round of economic stimulus checks.
5) Many manufacturing facilities, e.g., automobile plants are openingup and expanding production after theCovid-19 "lockdown."
6) Biden's Covid stimulus plan extends supplemental unemployment benefits of $300 per week until September, 2021.
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