Suppose now the government passes a law that significantly increases the minimum wage. This change in policy will cause the natural rate of unemployment towhich will:• Shift the long-run aggregate supply curve to the rightO Not impact the long-run aggregate supply curveO Shift the long-run aggregate supply curve to the leftComplete the following table by determining how each event impacts the position of the long-run aggregate supply (LAS) curve.Direction of LRAS Curve ShiftA government-sponsored training program increases the skill level of the workforce.Many workers leave to pursue more lucrative careers in foreign economies.A scientific breakthrough significantly increases food production per acre of farmland. Homework (Ch 33)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 level of technological knowledgeThe inflation rate132The price levelThe size of the labor forceSuppose 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.3hp0 USMay 1 PRICE LEVEL132128124120116112108104100P01020Symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph.30 40 50 60 70OUTPUT (Billions of dollars)80 90100MLRAS

Long run aggregate supply curve is vertical at the natural rate of GDP as in the long run potential…

Answered: Homework (Ch 33) 5. The slope and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose now the government passes a law that significantly increases the minimum wage. This change in policy will cause the natural rate of unemployment to which will: • Shift the long-run aggregate supply curve to the right O Not impact the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the left Complete the following table by determining how each event impacts the position of the long-run aggregate supply (LAS) curve. Direction of LRAS Curve Shift A government-sponsored training program increases the skill level of the workforce. Many workers leave to pursue more lucrative careers in foreign economies. A scientific breakthrough significantly increases food production per acre of farmland.

Homework (Ch 33)
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 level of technological knowledge
The inflation rate
132
The price level
The size of the labor force
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.
3
hp
0 US
May 1

PRICE LEVEL
132
128
124
120
116
112
108
104
100
P
0
10
20
Symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph.
30 40 50 60 70
OUTPUT (Billions of dollars)
80 90
100
M
LRAS

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