Price 1 LRAS Output Potential GDP AD: SRAS Real GDP
Posted: Thu May 05, 2022 6:49 am
- Price 1 Lras Output Potential Gdp Ad Sras Real Gdp 1 (32.15 KiB) Viewed 37 times
Question 1)
FIGURE 1
Population 50 million
Number in the labor force 30 million
Number employed full time 20 million
Number unemployed 2 million
a. What is the labor force participation rate of the economy in
Figure 1?
b. What is the unemployment rate of the economy in Figure 1?
Question 2)
Based on the assumptions of macroeconomics, what would be an
appropriate government policy response to combat inflation? What is
the Federal Reserve currently doing to address inflation?
Question 3)
Suppose that the Fed decides to decrease the growth rate of the
money supply in the U.S. What is most likely to happen to the U.S.
trade deficit, and to GDP?
Question 4)
How would you interpret this graph of an economy? What
conditions/gaps are this economy experiencing? (graph at top)
Question 5)
Using the AD/AS model show what happened to the US economy
during the onset of the COVID-19 pandemic.
Price 1 LRAS Output Potential GDP AD: SRAS Real GDP