Suppose the economy produces real GDP of $45 billion when unemployment is at its natural rate. Use the purple points (diamond symbols) to plot the economy's long-run aggregate supply (LRAS) curve on the graph. PRICE LEVEL 132 128 124 120 116 112 108 104 100 0 10 20 30 40 50 60 70 80 REAL GDP (Billions of dollars) LRAS Help Clear All n the table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve. Note: While economic growth generally shifts the LRAS curve to the right, some circumstances can shift it to the left. Event scientific breakthrough significantly increases food production per acre of farmland. government-sponsored training program increases the skill level of the workforce. he government allows more immigration of working-age adults. LRAS Curve Shifts to the... Right Left 4
Suppose the economy produces real GDP of $45 billion when unemployment is at its natural rate. Use the purple points (diamond symbols) to plot the economy's long-run aggregate supply (LRAS) curve on the graph. PRICE LEVEL 132 128 124 120 116 112 108 104 100 0 10 20 30 40 50 60 70 80 REAL GDP (Billions of dollars) LRAS Help Clear All n the table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve. Note: While economic growth generally shifts the LRAS curve to the right, some circumstances can shift it to the left. Event scientific breakthrough significantly increases food production per acre of farmland. government-sponsored training program increases the skill level of the workforce. he government allows more immigration of working-age adults. LRAS Curve Shifts to the... Right Left 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Suppose the economy produces real GDP of $45 billion when unemployment is at Its natural rate. Use the purple points
(diamond symbols) to plot the economy's long-run aggregate supply (LRAS) curve on the graph.
PRICE LEVEL
132
128
124
120
116
112
108
104
100
0 10 20
30 40 50 60 70 80
REAL GDP (Billions of dollars)
LRAS
Help Clear All
In the table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve. Note: While
economic growth generally shifts the LRAS curve to the right, some circumstances can shift it to the left.
Event
A scientific breakthrough significantly increases food production per acre of farmland.
A government-sponsored training program increases the skill level of the workforce.
The government allows more immigration of working-age adults.
LRAS Curve Shifts to the...
Right
Left
k](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf5870c4-1eaf-4703-9295-8b334f37eac7%2F68a2213b-cd6b-4150-811a-fe380c72eb67%2Fc22dg4_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose the economy produces real GDP of $45 billion when unemployment is at Its natural rate. Use the purple points
(diamond symbols) to plot the economy's long-run aggregate supply (LRAS) curve on the graph.
PRICE LEVEL
132
128
124
120
116
112
108
104
100
0 10 20
30 40 50 60 70 80
REAL GDP (Billions of dollars)
LRAS
Help Clear All
In the table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve. Note: While
economic growth generally shifts the LRAS curve to the right, some circumstances can shift it to the left.
Event
A scientific breakthrough significantly increases food production per acre of farmland.
A government-sponsored training program increases the skill level of the workforce.
The government allows more immigration of working-age adults.
LRAS Curve Shifts to the...
Right
Left
k
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