Build a standard ad-as diagram

Reference no: EM13938149

1. a) Use a single Powerpoint slide to build a standard AD-AS diagram, as seen in the lectures. Use textboxes to label the axes and all the essential curves, and key points such as equilibrium income and the price level. Note that equilibrium output should be labeled Yn, and equilibrium price should be labeled P1 = Pe = PT (which tells us that the initial price is the target price set by the Central Bank, and this is the price level expected by wage earners and firms). Now use a textbox to briefly explain why the AS curve slopes up. (Supply curves generally slope upwards, but why in particular does the AS curve slope upwards? It's an important but simple point, dealt with in the lectures. b) Using the same slide, explain in a textbox what will happen if output rises above Yn.

2. Now draw a full IS-LM / AD-AS model, with the IS-LM axes above the AD-AS, on a single slide (best to have your slide in ‘Portrait' orientation for this). Copy it once, to help you with Question 3. Now trace through with animated curves and textboxes as appropriate the effect of a fall in exports, assuming no change in the Central Bank's Monetary Policy settings (in other words, no change in its price target). You will be showing what happens in the Short Run, and the final state of the economy in the Medium Run. What is the level of output and the price level in the Medium Run. What has replaced the lost exports in Aggregate Demand?

3. Now show the effect of an expansionary Monetary Policy, again with the animated curves running in correct sequence and explained briefly with textboxes. What is the level of output and the price level in the Medium Run?

Reference no: EM13938149

Questions Cloud

Describe different types of intermediate sanctions : Intermediate sanctions provide a variety of options for placing higher risk offenders into a community supervision setting. Identify and describe three different types of intermediate sanctions

Significant events in the history of the firm : Briefly summarise the significant events in the history of the firm. A visual timeline is acceptable. Choose three major events (including entering China) and discuss these in detail, with reference to the impact on the strategic direction of Lion..

Outline of the strategic business issue : Outline of the strategic business issue - contextualised within the organisational setting, including an overview of relevant strategic decisions that led to the current position (discussed through relevant literature, tools and techniques).

Provide the journal entries for sims to record the sales : Provide the journal entries for Sims to record the sales in a and b. Provide the journal entry to record Lauber's payment in c. Provide the journal entry to record Lauber's payment in d.

Build a standard ad-as diagram : Now show the effect of an expansionary Monetary Policy, again with the animated curves running in correct sequence and explained briefly with textboxes. What is the level of output and the price level in the Medium Run?

What is the function of the objective lens : Working Distance of the objective lenses is the distance between the tip of that objective and the speciment being viewed. Based on these information, which objective lenses give you the longest working distance? Why is the microscope called the c..

Prepare sullivans journal entries to record of transactions : Sullivan Company sells industrial cleaning supplies and equipment to other businesses. Prepare Sullivan's journal entries to record each of these transactions.

Write about details of clinical nursing : Write about details of Clinical Nursing, Clinical decision making and predictors of patient participation in nursing care.

Internal analysis of the firm : Provide an internal analysis of the firm giving details of its current strategic position and tactics. You should also consider the resources and capabilities of the firm and how they impact upon the success or otherwise of the firm (Distinctivene..

User Account

All Pages