Answer Happy

6. (16 points) You will be drawing 2 graphs, correctly showing Aggregate Demand and Aggregate Supply. Start with drawing equilibrium, and shift from there. Remember, label correctly and take to the lines. a. Let's say England loves to buy our Wisconsin cheese. We export it there and they buy it up. Now let's say England had a big boom (expansion) and they want to import more of our Wisconsin cheese. In a graph, show me what that will do to OUR price level and real GDP. Use only Short-run AS. b. Congress passes a new law that eliminates all immigration to the U.S. Using the 4 steps to analyzing economic fluctuations (from your slides and book), show me on a graph what would happen to price level and real GDP using AD, AS, SRAS and LRAS.