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 + 108 104 The level of technological knowledge The price level. The inflation rate The quantity of physical capital 100 0 10 20 30 40 50 60 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 $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 + 108 104 The level of technological knowledge The price level. The inflation rate The quantity of physical capital 100 0 10 20 30 40 50 60 70 OUTPUT (Billions of dollars) 80 90 100 LRAS
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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