Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph.?PRICE LEVEL132128124120116112108104100O10 2030 40 50 00 70OUTPUT (Billions of dollars)O 90 100LRASSuppose now the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs morequickly. This change in policy will cause the natural rate of unemployment towhich willNot impact the long-run aggregate supply curveShift the long-run aggregate supply curve to the leftShift the long-run aggregate supply curve to the right 5. The slope and position of the long-run aggregate supply curveAssume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increase in money growth will affectwhich of the following? Check all that apply.The price levelThe size of the labor forceThe inflation rateThe quantity of physical capitalSuppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $30 billion.

Long run aggregate supply curve depicts the potential level of output that an economy can produce.…

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. The price level

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. The price level

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph.
?
PRICE LEVEL
132
128
124
120
116
112
108
104
100
O
10 20
30 40 50 00 70
OUTPUT (Billions of dollars)
O 90 100
LRAS
Suppose now the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more
quickly. This change in policy will cause the natural rate of unemployment to
which will
Not impact the long-run aggregate supply curve
Shift the long-run aggregate supply curve to the left
Shift the long-run aggregate supply curve to the right

5. The slope and position of the long-run aggregate supply curve
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.
The price level
The size of the labor force
The inflation rate
The quantity of physical capital
Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $30 billion.

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