Draw a second supply and demand graph
Course:- Macroeconomics
Reference No.:- EM131350334

Assignment Help
Assignment Help >> Macroeconomics

Question: Imagine that the entire Australian national economy could be depicted as a single market with supply and demand for all goods and services produced by that economy. (In other words we are assuming that whole economy behaves just like the sum of its parts, i.e. the individual markets for particular goods and services added up).

(a) Depict the Australian economy in a single supply and demand graph (properly labeling curves and axes).

(b) Now draw a second supply and demand graph for the national economy depicting how the recent fall in Australian mineral exports has affected the overall economy. (Remembering that the minerals market is a major part of the overall national market).

(c) Use your first and second diagrams to tell a story about why minerals prices are falling. Keep in mind this is not necessarily the whole or even the correct story but the one implied by your model.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Macroeconomics) Materials
There are some concerns that employers might opt out of providing health coverage and simply give employees vouchers and direct them to buy coverage through their states' ex
Assume you inherit 40 copies of the textbook for ECON 3125. You plan to sell these textbooks in two markets: directly to students on campus, and sell them online on ebay.
Discussion - Why the Rapid Development? What do you feel has accounted for the rapid development of countries like South Korea, China, Brazil, and India? Explain your reason
A major car manufacturer wants to test a new engine to determine whether it meets new air pollution standards. The mean emission of all engine of this type must be less than
Are there any government regulations that have affected this company's operations domestically or abroad? Explain. Describe the inputs that are used in this company's producti
With the unemployment salary at an hourly rate of $7.25 do youbelieve that this helps our economy, does it hurt oureconomy? Should it be higher as there are other states andco
Assume that more firms receive permission to drill for oil in Alaska and United States controlled waters. In addition, suppose that the popularity of SUVs declines in favor of
A paint factory produces paints, but in the process transmits chemicals into the soil below the factory. These chemicals taint the soil such that the farmer whose land abuts