Use the Dynamic Aggregate Demand and Aggregate Supply Model and Start

question 81

Essay

Use the dynamic aggregate demand and aggregate supply model and start with Year 1 in a long-run macroeconomic equilibrium. For Year 2, graph aggregate demand, long-run aggregate supply, and short-run aggregate supply such that the condition of the economy will induce the government to conduct contractionary fiscal policy. Briefly explain the condition of the economy and what the government is attempting to do.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Botnet

A network of computers infected by malware that are controlled as a group without the owners' knowledge, usually to send spam or launch attacks.

Firewall

A network security device that monitors and filters incoming and outgoing network traffic based on an organization's previously established security policies.

Hacker

Anyone who unlawfully breaks into a computer system (whether an individual computer or a network).

Packet

A formatted unit of data carried by a packet-switched network, containing both control information and user data, critical for data transmission protocols.