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 al that apply. The inflation rate The price level The level of technological knowledge The size of the labor force 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 10 20 30 40 50 60 70 80 OUTPUT (Billions of dollars) Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment to ,which will: Shift the long-run aggregate supply curve to the right C Shift the long-run aggregate supply curve to the left Not affect the long-run aggregate supply curve PRICE LEVEL
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 al that apply. The inflation rate The price level The level of technological knowledge The size of the labor force 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 10 20 30 40 50 60 70 80 OUTPUT (Billions of dollars) Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment to ,which will: Shift the long-run aggregate supply curve to the right C Shift the long-run aggregate supply curve to the left Not affect the long-run aggregate supply curve PRICE LEVEL
Chapter22: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 12P
Related questions
Question
![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 inflation rate
C The price level
C The level of technological knowledge
The size of the labor force
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
10
20
30
40
50
60
70
80
OUTPUT (Billions of dollars)
Suppose the government passes a law that significantly increases the minimum wage. The 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
O Not affect the long-run aggregate supply curve
PRICE LEVEL](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F223bda9f-9efb-4a06-a2bc-317d4fee16da%2Ffd8ba9f2-90a4-4612-87a3-8b8590b6f593%2F24gdbm7_processed.png&w=3840&q=75)
Transcribed Image Text: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 inflation rate
C The price level
C The level of technological knowledge
The size of the labor force
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
10
20
30
40
50
60
70
80
OUTPUT (Billions of dollars)
Suppose the government passes a law that significantly increases the minimum wage. The 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
O Not affect the long-run aggregate supply curve
PRICE LEVEL
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