Question

Small Case 2. The country A’s exports to other countries decreased Write the short essay (70-100...

Small Case 2.

The country A’s exports to other countries decreased Write the short essay (70-100 words) by answering the below questions:

a. What is changing, AD or SRAS?

b. Will it increase or decrease? Explain how this change will take place.

c. Draw the appropriate change below.

d. What happened to Real GDP?

e. What phase of the business cycle would the economy be in?

f. What is likely happening to unemployment?

g. What happened to price level?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a. AD is changing because

b. AD= C+I+G+X-M so a decrease in X will decrease the AD and it will shift to the left

c.

Initially Price was at level OP and output at OQ. AD decreased and moved to AD1.

d. Real GDP fell from OQ to OB

e. The economy is under recessionary phase of business cycle wherein prices, output, employment are declining

f. Unemployment is increasing. Initially employment was corresponding to OQ, now it is at OB and OB<OQ

g. Price levels have also fallen from OP to OA

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Small Case 4. Country experiences a decrease of ( the number of expats ) What is...
Small Case 4. Country experiences a decrease of ( the number of expats ) What is changing, AD or SRAS? Will it increase or decrease? Explain how this change will take place. Draw the appropriate change below. What happened to Real GDP? What phase of the business cycle would the economy be in? What is likely happening to unemployment? What happened to price level?
Using the India as the subject Country, Answer the following 1 paragraph each. 2. In your...
Using the India as the subject Country, Answer the following 1 paragraph each. 2. In your essay, you will consider and address the following questions and points: a. What is the current state of the economy that you have chosen? Collect the latest available data on nominal GDP, real GDP, per capita real GDP, unemployment rate, inflation rate, interest rates, exchange rate(s), and any other important macroeconomic data. b. Is the country experiencing an inflationary gap or a recessionary gap?...
2. Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s...
2. Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s households are much more sophisticated compared to those in Country A and they have a consumption function that depends on the (real) interest rate in addition to disposable income: Country A: Y = 12000 C = 2000 + 0.9(Y-T) I = 1500 – 100r G = 1500 T=2000 Country B: Y=8000 C = 1000 + 0.8(Y-T) – 400r I = 1000 – 200r G...
2. Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s...
2. Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s households are much more sophisticated compared to those in Country A and they have a consumption function that depends on the (real) interest rate in addition to disposable income: Country A: Y = 12000 C = 2000 + 0.9(Y-T) I = 1500 – 100r G = 1500 T=2000 Country B: Y=8000 C = 1000 + 0.8(Y-T) – 400r I = 1000 – 200r G...
The tables below describe the employment and price level situation for the country of Gatoria over...
The tables below describe the employment and price level situation for the country of Gatoria over the past four years. Fill out the tables and use them to answer the following questions about how policymakers and politicians in the country might respond to such a situation. Year # Unemployed (in millions) # Employed (in millions) Unemployment Rate 2015 16 210 2016 22 205 2017 20 195 2018 18 200 What has been happening to the unemployment rate since 2015? Use...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How many months has the U.S. economy been in this stage of the business cycle? ___________ months 2. How long has the current expansion/recovery lasted to date? _________________ How does this compare to the average length of U.S. recessions since 1854? ______________________________. 3. What do the last four recoveries/expansions (that is, the current recovery/expansion and the previous three recovery/expansions), suggest about a new trend in...
In narrative essay format, I want you to address a business/organization case study using multiple concepts...
In narrative essay format, I want you to address a business/organization case study using multiple concepts from class. The case question and case text begin on page 5 of this document. You need to demonstrate their best understanding of management and organizational behavior theory, and the application of those ideas to improve the understanding of various issues. You need to clearly identify at least 3 distinct, substantive issues. For each issue you need to 1), identify evidence from the case...
2. SECURING THE WORKFORCE Diversity management in X-tech, a Japanese organisation This case is intended to...
2. SECURING THE WORKFORCE Diversity management in X-tech, a Japanese organisation This case is intended to be used as a basis for class discussion rather than as an illustration of the effective or ineffective handling of an administrative situation. The name of the company is disguised. INTRODUCTION In light of demographic concerns, in 2012, the Japanese government initiated an effort to change the work environment in order to secure the workforce of the future. Japan is world renowned for its...
In February 2012, the Pepsi Next product was launched into the US market. This case study...
In February 2012, the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Pepsi Next Case Study Introduction Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012). The new product...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT