Suppose a temporary fall occurs in money demand. Using the line drawing tool, illustrate the impact of this event. Exchange Rate, E Properly label your line. Carefully follow the instructions above and only draw the required object. DD" Now let the govemment use temporary fiscal contraction to restore full employment. In this case the policy re-establishes full employment O A. but causes the currency to further appreciate. E' O B. and restores the currency to its initial value. O C. but causes the currency to further depreciate. O D. but has an indeterminate effect on the exchange rate. AA Output, Y
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- In a closed economy, if the government wants to increase aggregate demand, it can O increase, increase O increase, decrease O decrease, increase O decrease, decrease government purchases or taxe The nation of Ectenia has long banned the export of its puka shells. A newly elected resident removes the export ban. This change in policy will cause the nation's currency to making the goods Ectenia exports expensive. O appreciate, less O appreciate, more O depreciate, less O depreciate, more1- Based on the table, identify and explain the components of Aggregated Demand. Showthe variation in the Components of AD over four years which contributes the maximum tothe AD 2- From the table, relate Fiscal balance and Current account balance. Analyze why bothshow negative trend. 3- What is the trend in the fluctuation of OMR exchange rate against Dollar? What ismethod used for fixing exchange rate against $ and how is related to the trend shown in thetable 4- From the table we see that Trade balance is growing steadily but the Fiscal balanceshows negative trend. Are these related variables or independent variables. What does itindicate about the AD and AS of Oman’s economy? 5- Calculate the NON-WORKING POPULATION of Male and NON-WORKINGPOPULATION of Female of the country based on the population structure given above inthe chart. Consider the minimum working age is 20, explain working and non-workingpopulation and show calculation to demonstrate how you have reached the conclusion.…Refer to the graph. The movement from point 1 to point 2 is stimulated by a disequilibrium in which there is domestic and O A. unemployment; trade deficit O B. overemployment; trade deficit OC. unemployment; trade surplus O D. overemployment; trade surplus O E. inflation; unemployment Exchange Rate, E |↑ EP/P |↓ XX¹ Domestic Spending, A Xx² <= 2
- Under what circumstances does aggregate demand increase? Aggregate demand increases if expected future income, inflation, or profits .And aggregate demand increases if fiscal policy government expenditure. O A. decrease; decreases O B. increase; decreases O C. increase; increases O D. decrease; increases Aggregate demand increases if fiscal policy taxes or transfer payments. O A. decreases; increases O B. decreases; decreases O C. increases; decreases O D. increases; increases Aggregate demand increases if monetary policy the quantity of money and interest rates. O A. increases; increases O B. increases; decreases O C. decreases; increases O D. decreases; decreases or foreign income Aggregate demand increases if the exchange rate O A. increases; decreases Click to select your answer. MacBook Air DD DII F11 F10 :こ- F9 F8 888 F7 吕0 F6 F5 F4 F3 F2 esc F1 & $ # 7 ! 2 3 4 1 P Y W E R Q K D F G A S 00 TThe US and China are the two biggest economies of the world. Which of these situations will most likely increase the value of the US dollar as it trades with China? a. China's GDP increases faster than US O b. China imports more from the US than it exports to the US O c. China exports more to the US than it imports from the US O d. China's exports increases sharplySuppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4. (i) What is the nominal exchange rate?e - enor-P Use the expression: rea! - PrOT ,where ereal is real exchange rate, enor is nominal exchange rate, P is domestic price level and Pro, is foreign price level (ii) Suppose the real exchange rate rises by 10%, the inflation rate in the domestic country is 6%, and the inflation rate in the foreign country is 4%. By what percentage does the nominal exchange rate change?
- If Americans want to go to Rio to see the Olympics, which of the following would be NOT be true O The price of the Brazilian Real rises O The Dollar appreciates as compared to the Brazilian Real O Supply of dollars increases in the world market O The demand of Brazilian Reals would increaseA Moving to another question will save this response. Quèstion 16 What is the likely result from a depreciation of a nation's currency when its economy is already operating at its full-employment level of output? O A. Net exports would rise, but equilibrium GDP would fall. O B. Net exports would fall and contribute to demand-pull inflation. OC. Net exports would fall, but equilibrium GDP would rise. O D. Net exports would rise and contribute to demand-pull inflation. hp *****1. Inform the citizens aboutthe reasons for the downward sloping and upward sloping of the demand and supply curves respectively. 2. n the equation Y = C + I + G + Nx, sensitize the citizens aboutthe mechanism under which net exports come up 3. Explainto the citizens of your countrythe situations that surround the balance of payment in an economy.
- Tools Consider two similar restaurants In dose proximity to each other on elther side of the U.S.-Mexico border. Suppose the dollar depreciates agalnst the peso. The following graph shows the supply and demand curves for meals at the restaurant on the Mexican side of the border. On the following graph, shtft erther the supply curve or the demand curve to represent the effect of the devaluation of the dollar agalnst the peso on the market for meals at the restaurant on the Mexican side of the border. (? O D D. QUANTITY (MEALS) The dollar devaluation harms PRICE (Pesos)If a country's currency depreciates, what would be the effect on the Bala Select one: O a. It becomes flatter. O b. A shift to the right. O c. It becomes steeper. Od. A shift to the left.Which of these is an export for the UK economy? Selectați răspunsul corect: O a. Chinese tourists buying a cake in an English tea shop O b. UK car manufacturer buying Chinese steel O. An English lourist buying a colfee in Paris O d. An English football club buying a French footballer Strong inflationary expectations tend to discourage: Selectați răspunsul corect: O a. and harm collectors of gold coins. O b. saving and reduce inflationary pressure. curIsumplion and encouraye investmenl O d. saving and enhance infiationary pressure. O e. borrowing and encourage saving.