Fiscal Policy Review Work Sheet in Economics Assignment please include the drawing in attachment. if there is no drawing i will not release the money. than

Fiscal Policy Review Work Sheet in Economics Assignment please include the drawing in attachment. if there is no drawing i will not release the money. thank you in advance. all information should be included in the attachment. It is time once again to practice writing a free response question (FRQ). On the AP
Exam, you may have a FRQ from this unit. When you answer these questions, you
must follow a specific format. Please read the instructions below so you will understand
how to correctly answer a FRQ.
•
•
•
•
•
•
•
•
Answer in clear, concise language. You are not writing an essay.
Following directions is important, the first word in a FRQ can tell you a lot.
“Identify” means a one- or two-word answer; “explain” always means in words
and pictures where appropriate; and “how” means how and why.
Include correctly drawn and labeled graphs and diagrams to support your answer
where needed, even if the question does not specifically tell you to draw one.
Use blue or black ink to create your drawings. You will be required to do this on
the AP Exam. If you like to erase, use an erasable ink pen.
Separate and label the answer in the same manner in which the question is
written. For example if there are parts A, B (i), B (ii), and C, your answer must
have parts A, B (i), B (ii), and C.
Answer the questions in logical order; they are designed that way for a reason.
Be consistent with your answer.
You may use standard economic abbreviations. For example, RGDP for real
GDP is fine.
The Question
Assume an economy that is operating above full employment.
A. Draw a correctly labeled aggregate demand and aggregate supply graph and
show each of the following:
i.
The long-run aggregate supply curve
ii.
Current price level and output levels, labeled PLe and Ye
iii.
Full employment output, labeled Yf
B. Identify one fiscal policy action that could resolve the problem.
C. Using your graph in Part A, show the short-run effects of the action you identified
on each of the following:
i.
Aggregate demand. Explain (use the cause and effect chain you learned
in the lesson)
ii.
Output
iii.
Price level
D. Using a correctly labeled loanable funds graph, show the effect of the policy you
identified in Part B on real interest rates.
E. Given the change in the real interest rate in Part D, what is the impact on each of
the following?
i.
ii.
iii.
Investment
Economic growth rate. Explain.
The international value of the dollar. Explain.
F. Now assume instead that the government takes no policy action to fix the
problem identified in part A.
i.
In the long run, will the short-run aggregate supply increase, decrease, or
remain unchanged? Explain.
Please view the Scoring Guidelines before beginning the assessment. On the AP Exam,
you would normally have about 25 minutes to answer this question. It would be
weighted to equal 15 points.

Purchase answer to see full
attachment