Part A1. The long-run aggregate supply curve can never shift (Points :2)2. The Keynesian portion of the short-run aggregate supply (SAS) curve would be relevant during a recessionary situation (Points :2)3. The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase (Points :2)4. Either a decrease in the nominal money supply by the Federal Reserve, all else held constant, or an increase in the price level, all else held constant, will shift the aggregate demand curve to the left (Points :2)5. Stagflation occurs when the aggregate demand (AD) curve shifts out on the upward sloping portion of the short-run aggregate supply (SAS) curve (Points :2)Part B Evaluate whether each of the following statements is true or false. Explain your answer and provide supporting rationale, using graphs to support your answer. You can create graphs by hand and take pictures and upload them with your answers, or you may use Word or Excel, and upload the file created by these software packages.A) If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money.B) The federal governmentâs control of the money supply, which influences interest rates, is the primary tool that policy makers use to impact the macro economy.C) A decrease in the reserve requirement decreases the money supply because banks have fewer reserves.D) The real money demand curve shows how households and businesses change their spending in response to changes in the interest rate.E) Both an increase in the nominal money supply by the Federal Reserve and an increase in the price level will cause the real money supply curve to shift to the right.Write a 1000-word paper that includes your answers to both Part 1 and Part 2 of the assignment.You must use three outside sources in addition to your textbook; these sources may include scholarly sources, credible newspapers, trade journals, and/or websites. Be sure to use OCLS to find these sources.Your entire assignment should be APA formatted.
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