Macroeconomic Prescription for the Near Future
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Subject: modern graph and prediction of aggregate supply and demand curve
Details: write a paper describing my assessment of the current aggregate demand and aggregate suppy curves; my prediction and prescription for the near future. sources must be sited. The ad/as curves reasonably coincide with reality, include graphics, economic prediction for the near future is pased upon economic facts and sound economic theory. Macroeconomic prescription for the near future is logical based upon my prediction of the economy.
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can you give me a starting point for this? maybe a few paragraphs?
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Solution Summary
The expert examines macroeconomic prescriptions for the near future.
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The question is very general. I think the first step for you is to learn enough details about aggregate supply and demand.
So I attached some description of the two curves.
Aggregate Demand, Aggregate Supply, and Inflation
Aggregate Demand: the total demand for all goods and services in the economy.
- inversely related to the price level
The higher interest rate decreases planned investment and leads to an exchange rate appreciation, decreasing net exports. This reduces planned aggregate expenditure, causing equilibrium output (income) to fall.
When the price level increases the demand for money (Md) rises. With the money supply constant, the interest rate will rise to ...
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