Are you pressed for time and haven’t started working on your assignment yet? Would you like to buy an assignment? Use our custom writing services for better grades. Even if your deadline is approaching fast, our writers can handle your task right when you need it. Our writers will complete your order from scratch and make sure it’s completely unique.
Order a Similar Paper Order a Different Paper
1.The graph above shows
the AD/LRAS/SRAS functions for a country.
2.In the short run, wages and prices are sticky due to contracts, but they fully adjust to market conditions in the long run.
3.Marginal propensity to consume is MPC = 0.80
4.Okun’s coefficient equals α = 2.
5.Currently all the markets are in equilibrium.
6.There is no foreign trade and so net exports equal zero.
7.Currently the government purchases equal G = 1,000 units.
8.All the questions refer independently to this baseline scenario.
9.The short run effects of a policy or an event on P and Y are defined as the values of these variables after the AD function shifts but before the SRAS function begins shifting.
1.Investment spending goes down by ΔI = -180. What will be the short-run effects on P and Y?
2. Investment spending goes down by ΔI = -180. What will be the short-run effect on cyclical unemployment rate? What will be the long-run effect on cyclical unemployment rate?By short-run and long-run effects, I mean the new values of the variables after the occurrence of an event. 1701601501401301201101009080706050403020100 9,0009,1009,2009,3009,4009,5009,6009,7009,3009,900 10,000 10,100 10,200 10,300 10,400 10,500 10,600 10,700 10,300 10,900 11,000 11,100