Below are three questions for the second part of the exam. The first question is worth twenty ponts, and the other two questions are worth ten points. Please use the attached graph to answer the first question.
1. a. What is Point A referred to? And what economic conditions would you expect to find at this point (GDP, employment)?
b. The diagram shows the AD curve shifting to the left and a new short run equilibrium position for the economy. List and explain three factors that may have caused the AD curve to shift the way it did.
c. What ‘gap’ is created? Explain the reason why we call the gap what it is called.
d. What specific monetary and fiscal policies would be put into effect in an effort for the economy to return to point A?
2a. Explain the importance of productivity in obtaining long run growth in an economy.
b. What factors contribute to the growth in productivity in an economy? Explain how each factor contributes to increasing productivity.
3. Summarize the recent employment report that was released on Friday, May 6. How many jobs were added? Did wages rise or fall and by how much? What industries benefited the most in terms of adding jobs? What was the one negative found in this report? Explain. (You can find an article on the employment report by Googling for the article. This should be easy to find).
This written part of the exam is due on Friday as well.
these are the questions . I did just the answers and not an essay form please