Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In thelong run, this increase in money growth will affect which of the following? Check all that apply.Suppose when unemployment is at its natural rate the economy produces a level of real GDP equalto $50 billion.Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS)curve on the graph.132128124120116112108The inflation rateThe quantity of physical capitalThe size of the labor forceThe price level1041000 102030 40 50 60 70OUTPUT (Billions of dollars)80 90 100LRAS(?)Suppose now the government passes a law that reduces unemployment benefits in a way thatcauses unemployed workers to seek out new jobs more quickly. This change in policy will cause thenatural rate of unemployment to, which will:Shift the long-run aggregate supply curve to the leftNot impact the long-run aggregate supply curveShift the long-run aggregate supply curve to the rightComplete the following table by determining how each event impacts the position of the long-runaggregate supply (LRAS) curve.An investment tax credit increases the rate at which firmsacquire machinery and equipment.Many workers leave to pursue more lucrative careers inforeign economies.For environmental and safety reasons, the governmentrequires that the country's nuclear power plants bepermanently shut down.Direction of LRAS Curve Shift

When the supply of money in an economy increases, the demand for products and services rises. This…

Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increase in money growth will affect which of the following? Check all that apply. Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $50 billion. Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph. PRICE LEVEL 132 126 124 120 8 116 112 108 The inflation rate The quantity of physical capital The size of the labor force The price level 104 100 。 10 20 30 40 50 70 OUTPUT (Billions of dollars) 80 90 100 LRAS

Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increase in money growth will affect which of the following? Check all that apply. Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $50 billion. Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph. PRICE LEVEL 132 126 124 120 8 116 112 108 The inflation rate The quantity of physical capital The size of the labor force The price level 104 100 。 10 20 30 40 50 70 OUTPUT (Billions of dollars) 80 90 100 LRAS

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I keep getting the graph wrong, this is my last attempt to try to get most of the problem right