The table describes four possible outcomes for 2017, depending on the level of aggregate demand in that year. Potential GDP is $12 trillion and the natural unemployment rate is 5 percent. Unemployment rate (percent of labor force) Price level (2016 = 100) %3D A 102.5 9. 105.0 C 107.5 4 D 110.0 Draw the four points A,B,C, and D on the short-run Phillips curve using the data in the table. Label the points. Draw the short-run Phillips curve through the points. Label it SRPC.
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- The table describes four possible outcomes for 2017, depending on the level of aggregate demand in that year. Potential GDP is $12 trillion and the natural unemployment rate is 6 percent. Price level (GDP price index 2016 = 100) 112- 111- 110- Price level Unemployment rate (percent of labor force) (2016 = 100) 109- A 102.5 9. 108- B 105.0 107- C 107.5 106- 110.0 3 105- Draw the four points A,B,C, and D on the aggregate supply curve using the data in the table. Label the points. 104- 103- Draw the short-run aggregate supply curve. Label it AS. >>> Calculate values of real GDP to 1 decimal place. 102- 101- 100- 11.1 11.3 11.5 11.7 11.9 12.1 12.3 12.5 12.7 12.9 Real GDP (trillions of 2016 dollars) >>> Draw only the objects specified in the question. Selected: none Delete Clear e NextThe graph shows an aggregate demand curve. Draw a curve that shows the effect on aggregate demand of an increase in the expected future inflation rate. Label it. 140- 130- 120- 110- 100- 90- Price level (GDP deflator, 2009=100) AD 99 80+ 11.0 11.5 12.0 12.5 13.0 13.5 14.0 14.5 15.0 Real GDP (trillions of 2009 dollars)The country of Freeland has an aggregate demand curve determined by the equation M + U = 6% Freeland also has a potential growth rate of 2%. Using this information, draw Freeland's aggregate demand (AD) and long-run aggregate supply (LRAS) curves on the graph. Inflation rate (%) 12 11 10 9 8 7 6 5 4 3 2 1 0 -2 -1 0 LRAS 1 2 3 3 4 5 6 Real GDP growth rate (%) prevailing inflation rate: What is the prevailing inflation rate in Freeland? AD What is the prevailing real GDP growth rate? prevailing real GDP growth rate: 7 8 9 10 % %
- The graph depicts a hypothetical economy's short-run Philips curve (SRPC). Please shift the SRPC to reflect what happens when expected inflation decreases by 2 percentage points. After the shift in SRPC, what is the unemployment rate if the public expects no inflation in the economy? % Inflation rate (%) -1 -2 0 7 6 SRPC 5 4 3 2 -3 0 1 2 3 4 5 6 7 8 0 10Suppose the number of employed people in Pakistan is 20.5 million. The unemployment rate in this economy is 8.8 percent, and the labor force participation rate is 65 percent. What is the size of the labor force and working-age population? How many people are unemployed? Explain and analyze different government policies which affect the unemployment rate in Pakistan? ( Maximum 200 words). Before June 2020, the labor market in Pakistan was at equilibrium with an equilibrium wage (WE) of Rs. 15,000 and equilibrium quantity of labor (LE) 10 million. In the last week of June, 2020, government of Pakistan imposed a minimum wage Act raising the minimum wage to Rs. 20,000. Using a graph, explain the effect of imposition of minimum wage on unemployment in labor market of Pakistan .Suppose both nominal GDP rises by 10 percent and real GDP rise by 2percent. What has happened to the general price level? What is the inflationrate? Show your calculation.
- owing graph plots aggregate demand (ADyer) and aggregate supply (AS) for the imaginary country of Patagonia in the year 2027. the natural level of output in this economy is $6 trillion. plete the table by entering the inflation rate at each potential outcome point. :: Calculate the inflation rate to two decimal points of precision. following graph, use the green line (triangle symbol) to plot the long-run aggregate supply (LRAS) curve for this economy. LRAS AS AD2027 AD ADE 2 14 OUTPUT (Trillions of dollars) Outcome C ists forecast that if the government takes no action and the economy continues to grow at the current rate, aggregate demand in 2028 will b the curve labeled ADA, resulting in the outcome given by point A. If, however, the government pursues an expansionary policy, aggregate I in 2028 will be given by the curve labeled AD, resulting in the outcome given by point B. owing table presents projections for the unemployment rates that would occur at point A and point B.…6. Aggregate demand, aggregate supply, and the Phillips curve In the year 2027, aggregate demand and aggregate supply in the imaginary country of Daisen-Oki are represented by the curves AD 2027 and AS on the following graph. The price level is currently 102. The graph also shows two potential outcomes for 2028. The first possible aggregate demand curve is given by the curve labeled ADA curve, resulting in the outcome given by point A. The second possible aggregate demand curve is given by the curve labeled ADB, resulting in the outcome given by point B. PRICE LEVEL 108 107 106 105 104 103 102 101 100 0 AD 2 2027 A 4 B AS AD 6 8 10 OUTPUT (Trillions of dollars) 12 AD B A 14 16 ?< Consider an economy that initially has a labor force of 1,000 workers. Of these workers, 950.0 are employed and each works 40 hours per week. Ten units of output are produced by each hour of labor. The total number of hours worked per week is 38000 (Round your answer to the nearest whole number). The total output per week is 380000 (Round your answer to the nearest whole number). The unemployment rate is 5% (Round your answer to one decimal place). The economy enters a recession. Employment falls by 4%, and the number of hours per week worked by each employed worker fails by 2%. Employment is now 912 (round to the nearest whole number), and the total number of hours worked per week is now 35,750.4 (round your answer to one decimal place). In addition, 2.0% of the labor force becomes discouraged at the prospect of finding a job and leaves the labor force. The size of the labor force is now (Round your answer to the nearest whole number) The number of workers unemployed is ☐ (Round…
- Suppose that people consume only three goods, as shown in this table: 2020 Price Quantity 2021 Price Quantity Tennis Balls Percentage Change $2 100 True $2 100 False Golf Balls Bottles of Gatorade $4 100 $6 100 Complete the following table by computing the percentage change in price for each of the three goods. $2 200 $3 200 Tennis Balls Golf Balls Bottles of Gatorade 0% 50% Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is 50 True or False: If you were to learn that a bottle of Gatorade increased in size from 2020 to 2021, that information would raise your estimation of the inflation rate. %The most likely explanation for why the price index is rising is because People are receiving greater income from helicopter checks and extended unemployment benefits so they can be more discriminating buyers to find the lowest prices. People are receiving greater income from helicopter checks and extended unemployment benefits and the money is beginning to enter the real economy. Firms are receiving more orders so productivity is rising allowing inflation to ease. Businesses receive greater income so they have an incentive to expand capacity.In 2013, Prussia's aggregate demand curve was determined by the equation M + 0 = 4%. A change in aggregate demand means that in 2014, Prussia's aggregate demand curve was determined by the equation M + U = 7%. Using this information, draw Prussia's old and new dynamic aggregate demand curves on the graph. Inflation rate 14 13 12 11 10 9 8 7 4 3 2 1 0 -4 -3 2-1 0 1 2 3 4 5 Real GDP growth rate AD 2013 AD 2014 6 7 8 9 10 Which of the factors could have resulted in the change in aggregate demand seen between 2013 and 2014? higher consumer confidence an improvement in technology O a decrease in oil prices an increase in imports