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: O Shift the long-run aggregate supply curve to the right O Shift the long-run aggregate supply curve to the left Not impact the long-run aggregate supply curve Complete the following table by determining how each event impacts the position of the long-run aggregate supply (LRAS) curve. An investment tax credit increases the rate at which firms acquire machinery and equipment. The government allows more immigration of working-age adults who find work. For environmental and safety reasons, the government requires that the country's nuclear power plants be permanently shut down. Direction of LRAS Curve Shift
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: O Shift the long-run aggregate supply curve to the right O Shift the long-run aggregate supply curve to the left Not impact the long-run aggregate supply curve Complete the following table by determining how each event impacts the position of the long-run aggregate supply (LRAS) curve. An investment tax credit increases the rate at which firms acquire machinery and equipment. The government allows more immigration of working-age adults who find work. For environmental and safety reasons, the government requires that the country's nuclear power plants be permanently shut down. Direction of LRAS Curve Shift
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text: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
Shift the long-run aggregate supply curve to the left
Not impact the long-run aggregate supply curve
Complete the following table by determining how each event impacts the position of the long-run aggregate supply (LRAS) curve.
An investment tax credit increases the rate at which firms acquire machinery and
equipment.
The government allows more immigration of working-age adults who find work.
For environmental and safety reasons, the government requires that the country's nuclear
power plants be permanently shut down.
Direction of LRAS Curve Shift
Transcribed Image Text: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.
EL
132
Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $60 billion.
128
The size of the labor force
Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph.
124
The inflation rate
120
The price level
The quantity of physical capital
LRAS
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