U3.3 Graph Quiz(2)

U3.3 Graph Quiz(2) - Unit 3.3 Graph Quiz - 20 points...

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Unit 3.3 Graph Quiz - 20 points Directions: Answer all of the questions. Then message me your graph and answers. This quiz must be messaged to me with a well-drawn and labeled graph to receive full credit. The unemployment rate in the country of Southland is greater than the natural rate of unemployment. The people and the government are concerned about the U rate. They want action. 1.Using a correctly labeled graph of aggregate demand and aggregate supply (AD, AS, RGDP, PL) show the current (9 points) i. Equilibrium real gross domestic product, ii. Labeled national income at full employment - Y iii. Price level in Southland, 2. The president of Southland is receiving advice from two economic advisers—Kohelis and Raymond—about how best to reduce unemployment in Southland. Kohelis advises the president to decrease personal income taxes. (7 points) (a) How would such a decrease in taxes affect aggregate demand? Explain . (2 points) (b) Using your initial graph show the effect of this policy and what happens to
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This note was uploaded on 05/18/2011 for the course ECON 101 taught by Professor Mcdounough during the Spring '11 term at DeVry Westminster.

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U3.3 Graph Quiz(2) - Unit 3.3 Graph Quiz - 20 points...

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