PRICE LI116112108104100010203040 50 60 70OUTPUT (Billions of dollars)80 90 100Suppose 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 will:O Shift the long-run aggregate supply curve to the leftO Shift the long-run aggregate supply curve to the rightO Not impact the long-run aggregate supply curverisefallJComplete the following table by determining how each event impacts the position of the long-run aggregate supply (LRAS) curve.A government-sponsored training program increases the skill level of the workforce.The government allows more immigration of working-age adults who find work.A scientific breakthrough significantly increases food production per acre of farmland.Direction of LRAS Curve ShiftLeftNo shiftRight4 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 affectwhich of the following? Check all that apply.PRICE LEVELSuppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $70 billion.132Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph.128124120The price level116The quantity of physical capitalThe level of technological knowledge108The inflation rate1020850710808:0100LRASM

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 $70 billion. Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph. PRICE LEVEL 132 128 124 120 116 112 100 The price level The quantity of physical capital The level of technological knowledge The inflation rate 104 8 LRAS 27

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 $70 billion. Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph. PRICE LEVEL 132 128 124 120 116 112 100 The price level The quantity of physical capital The level of technological knowledge The inflation rate 104 8 LRAS 27

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Need help with this. Please show how to adjust the AS and AD lines. Thanks!
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