According to the US Census Bureau, in 1940 about 25% of the adult population over 25 had completed high school or higher. In 2017, about 90% of the adult population over 25 had a high school degree or higher. When thinking about higher levels of educational attainment in a workforce and the Aggregate Demand and Supply model, which curve(s) would this affect and in which direction? LRAS curve only, shifts to the right LRAS curve only, shifts to the left AD curve, shifts to the right OSRAS curve only, shifts to the right Both LRAS and SRAS curve, shift to the right

According to the US Census Bureau, in 1940 about 25% of the adult population over 25 had completed high school or higher. In 2017, about 90% of the adult population over 25 had a high school degree or higher. When thinking about higher levels of educational attainment in a workforce and the Aggregate Demand and Supply model, which curve(s) would this affect and in which direction? LRAS curve only, shifts to the right LRAS curve only, shifts to the left AD curve, shifts to the right OSRAS curve only, shifts to the right Both LRAS and SRAS curve, shift to the right

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter24: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section24.2: How Fiscal Policy Influences Aggregate Demand

Problem 2QQ

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Please note that this is a multi part quesition; thank you so much for your time and effort it means so much to me! Figure 1: Hayek’s (Classical) AD-AS Model (Image normally goes here) Part 1: Why does Hayek’s aggregate supply curve always lead to an equilibrium level of national output equal to the full-employment level of real GDP? Part2: Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayek’s idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce? Part 3: Do you believe that the Hayek’s classical AD-AS model explain the factors that cause changes (shifts) in AS realistically? Why or why not?
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