The slope and position of the long-run aggregate supply curveSuppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply.The size of the labor force The level of technological knowledge The price level The quantity of physical capital Suppose the economy produces real GDP of $70 billion when unemployment is at its natural rate.Use the purple points (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve on the graph.?132128LRAS12412011611210810410001020304050607080OUTPUT (Billions of dollars)PRICE LEVEL Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs morequickly. The policy will cause the natural rate of unemployment to ,which willO Not affect the long-run aggregate supply curveO Shift the long-run aggregate supply curve to the leftO Shift the long-run aggregate supply curve to the rightIn the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve.Direction of LRAS Curve ShiftThe government allows more immigration of working-age adults who find work.A scientific breakthrough significantly increases food production per acre of farmland.A government-sponsored training program increases the skill level of the workforce.11

The Fed doubles the growth rate of quantity of money in the economy which means that there is an…

Answered: Suppose the economy produces real GDP…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The slope and position of the long-run aggregate supply curve

Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply.

The size of the labor force

The level of technological knowledge

The price level

The quantity of physical capital

Suppose the economy produces real GDP of $70 billion when unemployment is at its natural rate.
Use the purple points (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve on the graph.
?
132
128
LRAS
124
120
116
112
108
104
100
0
10
20
30
40
50
60
70
80
OUTPUT (Billions of dollars)
PRICE LEVEL

Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more
quickly. The policy will cause the natural rate of unemployment to ,which will
O Not affect the long-run aggregate supply curve
O Shift the long-run aggregate supply curve to the left
O Shift the long-run aggregate supply curve to the right
In the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve.
Direction of LRAS Curve Shift
The government allows more immigration of working-age adults who find work.
A scientific breakthrough significantly increases food production per acre of farmland.
A government-sponsored training program increases the skill level of the workforce.
11

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