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Solved Assignment on Macroeconomics

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Added on  2021-06-17

Solved Assignment on Macroeconomics

   Added on 2021-06-17

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Running head: MACROECONOMICSMacroeconomicsName of the studentName of the universityAuthor note
Solved Assignment on Macroeconomics_1
1MACROECONOMICSTable of ContentsUnit 8:.........................................................................................................................................21.a)..........................................................................................................................................2b)............................................................................................................................................2c).............................................................................................................................................2d)............................................................................................................................................2e).............................................................................................................................................22.a)..........................................................................................................................................3b)............................................................................................................................................33.a)..........................................................................................................................................4b)............................................................................................................................................44.a)..........................................................................................................................................4b)............................................................................................................................................55..............................................................................................................................................5a).............................................................................................................................................5b)............................................................................................................................................6c).............................................................................................................................................6References:.................................................................................................................................7
Solved Assignment on Macroeconomics_2
2MACROECONOMICSUnit 8:1.a)In this situation, aggregate demand (AD) curve will shift towards right at first and thiswill increase the real national income of this country further (Dosi, Pereira, Roventini &Virgillito, 2017). b) During short-run, both the price level and real national income or gross domesticproduct (GDP) will increase further (Gambetti & Musso, 2017). In figure 1, the price levelincreases from P1 to P2 while real GDP increases from Y1 to Y2 as well. c)According to the given situation, expected price level will increase and consequentlybargains will be stuck for higher wages. Workers can earn higher wages for their bargainingpower. d)In long run, the aggregate supply (AS) curve of short-run will shift to the leftindicating that supply has decreased. This is shown in figure 1, where the AS curve shiftsfrom AS1 to AS2.e)In the new long-run macroeconomic equilibrium, price level becomes higher compareto the old one while the real national income remains at same level (Kaufmann & Scheufele,2017). Hence, the new equilibrium price level in figure 1 is P3 while the equilibrium level ofnational income remains at Y1.
Solved Assignment on Macroeconomics_3

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