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2. The slope and position of the long-run aggregate supply curve Which of the following factors will influence the position of the long-run aggregate supply curve? Check all that apply. The amount of available natural resources The price level The inflation rate The quantity of physical capital Suppose the economy produces real GDP of $70 billion when unemployment is at its natural rate. On the following graph, use the purple line (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve. 132 128 LRAS 124 120 118 112 108 104 100 10 20 30 40 50 60 70 80 REAL GDP (Billions of dollars) PRICE LEVEL

2. The slope and position of the long-run aggregate supply curve Which of the following factors will influence the position of the long-run aggregate supply curve? Check all that apply. The amount of available natural resources The price level The inflation rate The quantity of physical capital Suppose the economy produces real GDP of $70 billion when unemployment is at its natural rate. On the following graph, use the purple line (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve. 132 128 LRAS 124 120 118 112 108 104 100 10 20 30 40 50 60 70 80 REAL GDP (Billions of dollars) PRICE LEVEL

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 3CQQ
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2. The slope and position of the long-run aggregate supply curve Which of the following factors will influence the position of the long-run aggregate supply curve? Check all that apply. O The amount of available natural resources O The price level O The inflation rate O The quantity of physical capital Suppose the economy produces real GDP of $70 billion when unemployment is at its natural rate. On the following graph, use the purple line (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve. 132 128 LRAS 124 120 116 112 108 104 100 50 60 REAL GDP (Billions of dollars) 10 20 30 40 70 80 PRICE LEVEL
Transcribed Image Text:2. The slope and position of the long-run aggregate supply curve Which of the following factors will influence the position of the long-run aggregate supply curve? Check all that apply. O The amount of available natural resources O The price level O The inflation rate O The quantity of physical capital Suppose the economy produces real GDP of $70 billion when unemployment is at its natural rate. On the following graph, use the purple line (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve. 132 128 LRAS 124 120 116 112 108 104 100 50 60 REAL GDP (Billions of dollars) 10 20 30 40 70 80 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 Shift the long-run aggregate supply curve to the right O Not affect the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the left In the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve. Direction of LRAS Curve Shift Event Left Right No Shift The government allows more immigration of working-age adults. A scientific breakthrough significantly increases food production per hectare of farmland. A government-sponsored training program increases the skill level of the workforce.
Transcribed Image Text: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 Shift the long-run aggregate supply curve to the right O Not affect the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the left In the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve. Direction of LRAS Curve Shift Event Left Right No Shift The government allows more immigration of working-age adults. A scientific breakthrough significantly increases food production per hectare of farmland. A government-sponsored training program increases the skill level of the workforce.
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