X Course Hero X Course Hero X cdn.com/5fcfbb471fe01/15636104?X-Blackboard-Expiration=16683840000008X-Blackboard-Signature=%2FBJboAr4h + Q [ Page view | A Read aloud 5/23/2018 Page 6 of 15 *Quotes from The Lord of the Rings, or The Hobbit by JRR Tolkien. Nothing written in italics applies to the questions it's there just for Tolkien fun. Go forth and read! d) The Gondorian dollar appreciates. Draw and explain what happens to aggregate demand in the Gondorian economy in the short run. Identify any change in determinant(s) and explain why and how the change occurs. What happens to the price level, unemployment and real GDP in the short run? Is there an inflationary or recessionary gap? e) Draw and explain what happens to the Gondorian economy in the long run as a result of d). What happens to the price level, unemployment and real GDP in the long run? Include all the dynamics in your explanation and graph. f) A new discovery of mithril (a valuable metal resource) is located in the White Mountains of Gondor. Draw and explain what happens to the kingdom's economy. What happens to the price level and real GDP in the long run? The Dwarves delved deep at that time, seeking beneath Barazinbar for mithril, the metal beyond price that was becoming yearly ever harder to win. Section 13 The (returned) king, Aragorn the King Elessar, is a Keynesian advocate, as is his chief Steward, Faramir, younger son of Denethor.kboardedn.com/5fcfbb471fe01/15636104?X-Blackboard-Expiration=16683840000008X-Blackboard-Signature-704f + Q Page view A Read aloud T Add text Section 12 Denethor, son of Echthelion II, is Steward of Gondor in the absence of the rightful king. He is a firm believer in Say's Law and the laissez-faire approach to the economy of Gondor. He is not as other men of this time, Pippin, and whatever be his descent from father to son, by some chance the blood of Westernesse runs nearly true in him, as it does in his other son, Faramir, and yet did not in Boromir whom he loved best. He has long sight. He can perceive, if he bends his will thither, much of what is passing in the minds of men, even of those that dwell far of. It is difficult to deceive him, and dangerous to try. a) Draw aggregate demand, aggregate short run supply and aggregate long run supply for Gondor's economy in long run equilibrium. What is the unemployment level? b) Consumers in Minas Tirith believe there will be an acute shortage developing in the supply of rings and anticipate higher future price levels in the economy. Draw and explain what happens to aggregate demand in the Gondorian economy in the short run. Identify any change in determinant(s) and explain why and how the change occurs. What happens to the price level, unemployment and real GDP in the short run? Is there an inflationary or recessionary gap? c) Draw and explain what happens to the Gondorian economy in the long run as a result of b). What happens to the price level, unemployment and real GDP in the long run? Include all the dynamics in your explanation and graph. Page 6 of 15 5/23/2018 *Quotes from The Lord of the Rings, or The Hobbit by JRR Tolkien. Nothing written in italics applies to the questions-it's there just for Tolkien fun. Go forth and read