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
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
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 3PA
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Question
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.
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