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There is no additional info to any of the questions this is all i have Please show on a grapgh with clear numbers were the
There is no additional info to any of the questions this is all i have
Please show on a grapgh with clear numbers were the New MS line goes with proper numbers and the New Equil
The following graph shows the demand for money and money supply curves for an economy. Initially, the money supply is at $6 billion and the equilibrium interest rate is at 5%. Suppose that the government wants to reduce inflation. To accomplish this goal, the Fed needs to raise the interest rate to 8% by government securities. As a result the MS curve shifts On the following the graph, use the purple points (diamond symbol) to plot the new MS curve. Then use the grey point (star symbol) to indicate the new equilibrium Interest rate. 10 MS New MS co New Equilibrium INTEREST RATE (Percent) MD N 0 O 3 6 9 12 15 8 21 24 27 30 QUANTITY OF MONEY (Billions of Dollars)On the following graph, ADj represents the initial aggregate demand curve in a hypothetical economy, and AS represents the initial aggregate supply curve. The economy's full-employment output is $12 billion. On the following graph, use the grey point (star symbol) to mark the equilibrium. (Note: You will not be graded on any adjustments made to the graph.) (?) AS 108 105 Equilibrium 104 103 102 PRICE LEVEL (CPD) 101 AD 2 100 AD, AD 37 Full Employment 7 8 10 11 12 13 14 15 16 REAL GDP (Billions of dollars) The initial short-run equilibrium level of real GDP is $ billion, and the initial short-run equilibrium price level is Suppose the government, seeking full employment, borrows money and increases its expenditures by the amount it believes necessary to close the output gap. According to Keynesian economists, the government policy may result in zero crowding out. Which of the following aggregateThe initial shortrun equilibrium level of real GDP is billion, and the initial shortrun equilibrium price level is Suppose the government, seeking full employment, borrows money and increases its expenditures by the amount it believes necessary to close the output gap. xi'lccording to Keynesian economists, the government policy may result in zero crowding out. Which of the following aggregate demand curves shown in the previous graph would be consistent with zero crowding out? A31 AD2 ADg lls a result, the equilibrium level of real GDP will be billion, and the equilibrium price level will be According to Keynesian economists, which of the following is true in this case? Real GDP does not increase; only the price level increases. "he increase in deficit-financed government spending has no impact on real GDP or the price level. 'he increase in deficit-financed government spending causes real GDP to increase to full-employment output. "he increase in deficitfinanced government spending causes real GDP to increase, but not to fullemployment output. The following table lists federal expenditures, revenues, and GDP for the US. economy during several years. All numbers are in billions of dollars. Revenues Expenditures GDP Year (Billions of dollars) (Billions of dollars) (Billions of dollars) 2000 2,025 1,709 9,017 2001 1,991 1,863 10,128 2002 1,053 2,011 10,470 2003 1,703 2,100 10,901 2004 1,000 2,293 11,606 Plot the data for revenues and expenditures as a percentage of GDP on the following graph, rounded to the nearest percent. Use the orange points (square symbol) for expenditures and the green points (triangle symbol) for revenues. Line segments will automatically connect the points. m m ElI Expenditures A 1: Revenues m o FEDERAL EXPENDITURES AND REVENUES (Percent ofGDF'J 2333 2331 2332 2332 2334 In which years was the government's budget in deficit? Check all that apply. 2000 2001 0 2002 2003 2004 In 2001, the national debt byConsider a hypothetical closed economy in which households spend $0.80 of each additional dollar they earn and save the remaining $0.20. The marginal propensity to consume (MPC) for this economy is , and the spending multiplier for this economy is Suppose the government in this economy decides to increase government purchases by $400 billion. The increase in government purchases will lead to an increase in income, generating an initial change in consumption equal to . This increases income yet again, causing a second change in consumption equal to . The total change in demand resulting from the initial change in government spending is The following graph shows the aggregate demand curve (AD, ) for this economy before the change in government spending. Use the green line (triangle symbol) to plot the new aggregate demand curve (ADe) after the spending multiplier effect takes place. Hint: Be sure that the new aggregate demand curve (AD)2) is parallel to the initial aggregate demand curve (AD),). You can see the slope of ADj by selecting it on the graph. (?) 140 AD A 135 AD 2 130 125 PRICE LEVEL (CPD) 120 115 110 105 100 3 5 REAL GDP (Trillions of dollars)The following graph shows aggregate demand (AD) and aggregate supply (AS) curves for a hypothetical economy. 140 A 135 AS AD 2 130 125 New Macro Eq 120 PRICE LEVEL (CPI) 115 110 105 100 95 AD 200 220 240 260 280 300 320 340 380 380 400 REAL GDP (Billions of dollars)Suppose the full employment output level in this economy is $320 billion. In order to move the economy to full-employment output at the lowest possible price level, the aggregate demand curve must shift to the by at each price level. Use the green line (triangle symbols) to show the shift in aggregate demand necessary to return the economy to full employment. Then use the purple drop lines (diamond symbol) to show the macroeconomic equilibrium at full-employment output. Be sure the new aggregate demand curve (AD2) is parallel to AD1. You can click on A Dj to see its slope. Suppose the government in this economy wants to enact fiscal policies that will shift the aggregate demand curve in the direction and magnitude you indicated. The marginal propensity to consume (MPC) in this economy is 0.5. This implies a spending multiplier of and a tax multiplier of Consider each fiscal policy listed here. Which policies would shift the aggregate demand curve in a way that restores full-employment output at the lowest possible price level? Check all that apply. O Cut taxes by $60 billion Reduce government expenditures by $30 billion Increase government expenditures by $50 billion and raise taxes by $40 billion Increase government expenditures by $60 billion and raise taxes by $60 billion Decrease taxes by $80 billion and decrease government expenditures by $20 billionStep by Step Solution
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