Advanced Placement (AP), 29.11.2021 21:20 chaseashley24
Assume an economy operating below full employment.
Draw a correctly labeled AD/AS graph showing:
the problem in the economy
current price level and output
full employment output
Identify an open market operation that the Fed could implement to resolve the problem.
Using a correctly labeled money market graph with a side-by-side investment demand graph, show the effect of the policy you identified in part B on each of the following:
nominal interest rates
quantity of investment demanded
On your graph in part A, show the short-run effects of the action you identified on each of the following:
aggregate demand - explain why AD shifts
output
price level
Given your answer in part C, explain what will happen to each of the following:
the international value of the dollar
the nation's exports and imports
Answers: 3
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Arecent strip mall land development project included large amounts of paved surfaces. as a result of this project, groundwater levels in the developed area will most likely a. increase due to sealed artesian wells b. decrease as aquifers are not recharged c. decrease due to decreased surface runoff d. increase due to loss of unconfined aquifers e. increase due to a decrease in demand for fresh water
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Assume an economy operating below full employment.
Draw a correctly labeled AD/AS graph showing:
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