Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment towhich will:Not affect the long-run aggregate supply curveShift the long-run aggregate supply curve to the rightShift the long-run aggregate supply curve to the leftIn 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.O O 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 ofthe following? Check all that apply.The quantity of physical capitalThe size of the labor forceThe level of technological knowledgeThe inflation rateO O O O

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Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment to which will: Not affect the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the right O Shift the long-run aggregate supply curve to the left

Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment to which will: Not affect the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the right O Shift the long-run aggregate supply curve to the left

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter6: How Statisticians Measure Inflation

Section: Chapter Questions

Problem 6TY

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