Stock Markets Exposed

Economics 1. Suppose there is a stock market crash in Japan. Using a well-labeled graph show the effect in the

short run on the equilibrium price level in the U.S.A., equilibrium Real GDP in the Unites States of America, equilibrium unemployment rate in the Unites States of America? My answers: Equilibrium price level increases in the U.S.A., equilibrium Real GDP in the U.S.A. decreases, equilibrium unemployment rate in the Unites States of America.increases. ADC moves to the left(L) ASC moves to the L 2. Mexico's stock market is going under and the President of the Unites States gives $30 billion dollars to Mexico. Using a well labeled graph show the effect in the short run Unites States of America price level, Real GDP, and unemployment rate, when Mexico is going under, why should we give them $30 Billion dollars? My Answers Decrease in the short run Unites States of America price level rises, Real GDP decreases, and the unemployment rate increases when Mexico is going under. We should give the $30 billion dollars because Mexico is resource. ADC moves to the L ASC moves to the L

Public Comments

1. That is a silly question or questions - but you answers sound ok. Good Luck!!!