Using the AD/AS model construct two graphs that show how a recession can occur? Explain how discretionary fiscal or monetary policies can be used to moved the economy out of recession?
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Using the AD/AS model construct two graphs that show how a recession can occur? Explain how discretionary fiscal or
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- Please draw a AD-AS model as to how whether a tax that improves people’s health could have any potential long-term benefits for the economy.Hello Can you help me out. Use the AD/AS model to illustrate the following. Draw 6 graphs by hand. Show how the AD or the AS curve shift and in what direction (left or right). Also state what happens to equilibrium real GDP (Y), employment, and the equilibrium price level. [Note: Use the SRAS curve, not the LRAS.] A. an increase in government spending and/or transfer payments B. restrictive fiscal policy C. expansive monetary policy D. increase in investment according to Keynesians E. increase in investment according to supply-side economists F. a stock market crashThe government announces a cut in the income tax rate. (a) Explain the multiplier effect by analysing how a typical consumer would react to this tax cut and which other decisions this reaction would trigger in the economy. (b) Use the AD/AS model to analyse the short-run effects of this policy on GDP and the price level in the economy. (c) What are the long-run effects of the tax cut?
- Using AD/AS analysis, critically evaluate the problems economic policy makers mayface in response to a health pandemic that closes the economy for a period of time.In your answer, use diagrams and focus specifically on the effectiveness of monetaryand fiscal policy and comment on the potential long-run implications of the pandemicon the economy. The diagrams used should be your own and not taken from anothersource."Tax cuts are more effective in generating the economy when the economy is in recession compared to at full employment." True or False? Show and explain your answer based on the AD-AS model.Suppose an economy is hit by a recession and people’s income fall. Show graphically using AD-AS model how the price level and output are affected in the short-run. Can the government use fiscal policy to offset the effects on both price level and output simultaneously, explain?
- Draw a macro equilibrium using AD/AS. Clearly label all important points on your graph. Show how an expansionary Fiscal Policy affects the equilibrium price level and GDP. What can be said about the trade off between inflation and unemployment in this model?Using AD/AS analysis, critically evaluate the problems economic policy makers may face in response to a health pandemic that closes the economy for a period of time. In your answer, use diagrams and focus specifically on the effectiveness of monetary and fiscal policy and comment on the potential long-run implications of the pandemic on the economy. The diagrams used should be your own and not taken from another source.Policymakers who can influence AD cannot offset the adverse effects of a recession due to a fall in AS’. Do you agree with this statement? Explain the answer in words and using an AD-AS diagram
- Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayeks idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce?PLEASE CREATE A GRAPH. There was a collapse in housing markets and financial markets in 2008. On the graph, we see a decrease in actual real GDP in 2009. Use an AS/AD model to show how the economy got to the situation displayed in the graph in 2009. (Start with your graph from 2007, then shift the appropriate curve and show the new SR equilibrium in 200Suppose that consumers become pessimistic about the future health of the economy. What will happen to aggregate demand and to output? Show this using AD/AS graphs. What might the president and Congress have to do to keep output stable?