Help me with my Macroeconomics Assignment
Question -
In this Assignment, you will have to submit three Powerpoint Presentation Files with around four slides each.a) Name your first Powerpoint Presentation as < Powerpoint Presentation_1 > . Use the first slide of the first Powerpoint Presentation file to build a standard Y-E diagram. Use textboxes to label the axes and all the essential curves, and key points such as Ye (equilibrium income). Then copy it into three additional slides in the same Powerpoint Presentation file (easiest way is to just copy the entire slide three times). Keep one as a reserve, and carry out the three following tasks, one on each slide:
As a result of the Global Financial Crisis (GFC) that began in 2008, China suffered a massive fall in its exports to the
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United States. Assume that China began at the full employment level of GDP; you can show this as YFE in that of your second slide of the First Powerpoint Presentation file.
The GFC also made Western consumers much more cautious, and lowered their marginal propensity to consume (raised their marginal propensity to save). Show this in your third slide of the First Powerpoint Presentation file.
One economic policy suggested during the recession has been to lower taxes (to raise consumption) and lower government spending (to reduce the public or national debt). Let’s say G and To are reduced by equal amounts, for example we reduce G by $100 and reduce exogenous taxes To also by $100. Show the combined effect of this on your last slide of the First Powerpoint Presentation file.
b) Name your second Powerpoint Presentation sheet as < Powerpoint Presentation_2 > . Use the first slide of your second Powerpoint Presentation file to build a standard IS-LM diagram. Use textboxes to label the axes and all the essential curves, and key points such as Ye equilibrium income. Once you’ve built a diagram in the first slide of your second Powerpoint Presentation file, copy it onto the next three slides of the same second Powerpoint Presentation file. Keep one as a reserve, and carry out the three following tasks, one on each slide:
In response to the Great Recession that began in 2009, the Australian Government and Central Bank carried out the standard ‘policy mix’ to compensate for the fall in exports and raise GDP. Show this policy mix in your second slide of the second Powerpoint Presentation file, with a brief explanation of each policy in textboxes.
The ‘Fed’, the US Central Bank, similarly carried out an expansionary monetary policy, with interest rates close to zero and large increases in the Money Supply. However, these have not succeeded in raising GDP – the best that could be said is that they have prevented a larger fall. In your third slide of your second Powerpoint Presentation file, carefully draw the IS-LM curves as assumed by the school of economics which would predict this failure of monetary policy in a recession. Name that school of economics in a textbox.
One criticism of the expansionary fiscal policy adopted by many governments during the Recession has been that it will reduce investment by firms. Draw the IS and LM curves in the fourth slide of your second Powerpoint Presentation file so that they would fit this prediction.
c) Name your third Powerpoint Presentation file as < Powerpoint Presentation_3 > .
Use the first slide of your Third Powerpoint Presentation file to build a standard AD-AS diagram. Use textboxes to label the axes and all the essential curves, and key points such as equilibrium income and the price level. Note that equilibrium output should be labeled Yn, and equilibrium price should be labeled P1 = Pe = PT (which tells us that the initial price is the target price set by the Central Bank, and this is the price level expected by wage earners and firms). Now use a textbox to briefly explain why the AS curve slopes up. (Supply curves generally slope upwards, but why in particular does the AS curve slope upwards? Using the same slide, explain in a textbox what will happen if output rises above Yn.
And on the second slide of your third Powerpoint Presentation file, draw a full IS-LM / AD-AS model, with the IS-LM axes above the AD-AS, (best to have this slide in ‘Portrait’ orientation for this).
Copy it once, to help you with the next question.
Now trace through with animated curves and textboxes as appropriate the effect of a fall in exports, assuming no change in the Central Bank’s Monetary Policy settings (in other words, no change in its price target). You will be showing what happens in the Short Run, and the final state of the economy in the Medium Run. What is the level of output and the price level in the Medium Run. What has replaced the lost exports in Aggregate Demand? Use Textboxes wherever an explanation is needed.
Now show the effect of an expansionary Monetary Policy, again with the animated curves running in correct sequence and explained briefly with textboxes. What is the level of output and the price level in the Medium Run?
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Solution Preview - fall in China’s exports, the expenditure curve shifts downward from E to E1. 
As a result of this, employment level shifts back from full employment level YFE to Y1.
EYYEYFE45°E1Y1
3A reduction in Marginal Propensity to Consume caused by Global Financial Crisis changes the slope of E curve, makes E curve flatter and moves from E to E2.EYYE