1. Show how to derive the AD curve from the IS-LM curves. Use this picture to show what happens to the AD when there is a tax increase.
2. What is meant by the “neutrality of money”?
a. Under which AS curve is money neutral?
b. Under which AS curve is money definitely not neutral?
c. Using IS-LM-AD-AS curves, illustrate the case of money neutrality.
3. What is meant by 100% crowding out of fiscal policy?
a. Under what AS curve is there 100% crowding out?
b. Under which AS curve is there the LEAST amount of crowding out?
c. Using IS-LM-AD-AS curves, illustrate the case of 100% crowding out.
4. What is meant by the velocity of money? Using FRED, obtain a graph of the velocity of money (M1). What has happened to velocity since the Great Recession?
1. What are the two basic building blocks that provide the underlying foundation for the AS curve?
2. Show how to derive the modern AS curve from its underlying foundations. What assumptions are you making in your description of the labor market? Are these realistic, why or why not?
3. Explain why an increase in money wages shifts the modern AS curve to the left.
4. Show how to derive the classical AS curve from its underlying foundations. What assumptions are you making in your description of the labor market? Are these realistic, why or why not?
5. What would make the classical AS curve shift to the right? To the left?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more