Question
Qus1) Assume that an economy is initially operating at the natural rate of output (full employment output). Use the AD-AS model to illustrate graphically the
Qus1) Assume that an economy is initially operating at the natural rate of output (full employment output). Use the AD-AS model to illustrate graphically the effects on price and output of an increase in government spending and a decrease in the cash rate. Explain your assumptions with respect to the range of aggregate supply of your analysis.
Note: NEED A GRAPHICAL REPRESENTATION ON THIS QUESTION
Qus2) Using the World Bank's World Development Indicators database,
https://databank.worldbank.org/home.aspx,
a) Complete the following table.
| 2000 | 2006 | 2012 | 2018 | |
| GDP per Capita (Current) | ||||
| Australia | ||||
| China | ||||
| India | ||||
| U.S. | ||||
| GDP Growth rate | ||||
| Australia | ||||
| China | ||||
| India | ||||
| U.S. | ||||
| Inflation rate | ||||
| Australia | ||||
| China | ||||
| India | ||||
| U.S. |
b) Produce a plot for each variable (GDP, gdp growth, inflation) comparing the four countries.
c) What can be inferred with respect to economic growth and price control in each of these economies?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
