5. 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 ofthe following? Check all that apply.O The size of the labor forceO The price levelO The quantity of physical capitalO The level of technological knowledgeSuppose the economy produces real GDP of $50 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.(?)132128LRAS1241201161121081041001020304050607080OUTPUT (Billions of dollars)Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemploymentto v, which will:O Not affect the long-run aggregate supply curveO Shift the long-run aggregate supply curve to the rightO Shift 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 ShiftMany workers leave to pursue more lucrative careers in foreign economies.A scientific breakthrough significantly increases food production per acre of farmland.A government-sponsored training program increases the skill level of the workforce.PRICE LEVELక్లి శ్ీ

A rise in the money supply will probably raise demand, which will likely have a bigger impact on…

The slope and position of the long-run aggregate supply curve ppose 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 e following? Check all that apply. O The size of the labor force O The price level O The quantity of physical capital O The level of technological knowledge uppose the economy produces real GDP of $50 billion when unemployment is at its natural rate.

The slope and position of the long-run aggregate supply curve ppose 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 e following? Check all that apply. O The size of the labor force O The price level O The quantity of physical capital O The level of technological knowledge uppose the economy produces real GDP of $50 billion when unemployment is at its natural rate.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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12. Increase in the aggregate demand and long-run aggregate supply curves Consider the dynamic aggregate demand and aggregate supply diagram for a hypothetical economy. Between 2021 and 2022, the aggregate demand curve (AD) shifts from AD₁ to AD2, the short-run aggregate supply curve (SRAS) shifts from SRAS, to SRAS2, and the long-run aggregate supply curve (LRAS) shifts from LRAS, to LRAS2. PRICE LEVEL (CPI) 110 106 LRAS, AD₁ LRAS The inflation rate between 2021 and 2022 is SRAS, 6.6 REAL GDP (Trillions of dollars) 6.8 SRAS2 AD₂2 The growth rate of full-employment output between 2021 and 2022 is (?) Which of the following best explains the economic developments from 2021 to 2022? O The economy operated at full-employment output in 2021, but the subsequent increase in aggregate demand was not enough to restore the economy to full-employment output, leading to a recessionary gap in 2022. O A strong increase in aggregate demand allowed the economy to grow out of a recessionary gap in…
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Which is NOT neutral in the long run? O output O aggregate demand O money real interest rates
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The 2009 GDP totaled 12.8 trillion. There was a -2.4 % change from 2008's GDP of 13.2 trillion. The US experienced an inflation rate of 0%, and the unemployment rate reached 10.5%. Which phase of the business cycle was the US experiencing? Trough O Expansion O Recession O Peak O O O O
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