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Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increa in money growth will affect which of the following? Check that apply. 132 Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $60 billion. 128 Using the purple points (diamond symbol) plot the economy long-run aggregate supply (LRAS) curve on the graph. 124 120 116 112 108 The inflation rate 104 The level of technological knowledge The quantity of physical capital 100 The size of the labor force 0 10 20 30 40 50 60 70 80 90 100 OUTPUT (Billions of dollars) Suppose now the government passes a law that significan increases the minimum wage. This change in policy will cause the natural rate of unemployment to ich wi Shift the long-run aggregate supply curve to the right LRAS Not impact the long-run aggregate supply curve Oshift the long-run aggregate supply curve to the left

Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increa in money growth will affect which of the following? Check that apply. 132 Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $60 billion. 128 Using the purple points (diamond symbol) plot the economy long-run aggregate supply (LRAS) curve on the graph. 124 120 116 112 108 The inflation rate 104 The level of technological knowledge The quantity of physical capital 100 The size of the labor force 0 10 20 30 40 50 60 70 80 90 100 OUTPUT (Billions of dollars) Suppose now the government passes a law that significan increases the minimum wage. This change in policy will cause the natural rate of unemployment to ich wi Shift the long-run aggregate supply curve to the right LRAS Not impact the long-run aggregate supply curve Oshift the long-run aggregate supply curve to the left

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
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4. The slope and position of the long-run aggregate supp curve Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increa in money growth will affect which of the following? Check that apply. Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $60 billion. E Using the purple points (diamond symbol) plot the economy long-run aggregate supply (LRAS) curve on the graph. 132 128 124 120 116 112 108 The inflation rate 104 The level of technological knowledge The quantity of physical capital The size of the labor force 100 0 + 10 20 30 40 50 60 70 OUTPUT (Billions of dollars) 80 90 100 LRAS Suppose now the government passes a law that significan increases the minimum wage. This change in policy will cause the natural rate of unemployment to, which will: Oshift the long-run aggregate supply curve to the right Not impact the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the left Complete the following table by determining how each even impacts the position of the long-run aggregate supply (LRAS
Transcribed Image Text:4. The slope and position of the long-run aggregate supp curve Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increa in money growth will affect which of the following? Check that apply. Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $60 billion. E Using the purple points (diamond symbol) plot the economy long-run aggregate supply (LRAS) curve on the graph. 132 128 124 120 116 112 108 The inflation rate 104 The level of technological knowledge The quantity of physical capital The size of the labor force 100 0 + 10 20 30 40 50 60 70 OUTPUT (Billions of dollars) 80 90 100 LRAS Suppose now the government passes a law that significan increases the minimum wage. This change in policy will cause the natural rate of unemployment to, which will: Oshift the long-run aggregate supply curve to the right Not impact the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the left Complete the following table by determining how each even impacts the position of the long-run aggregate supply (LRAS
Using the purple points (diamond symbol) plot the econom long-run aggregate supply (LRAS) curve on the graph. ? PRICE LEVEL 132 128 124 120 116 112 108 104 100 0 10 20 30 40 50 60 70 OUTPUT (Billions of dollars) 80 90 100 Suppose now the government passes a law that significa increases the minimum wage. This change in policy will cause the natural rate of unemployment to, which will: O Shift the long-run aggregate supply curve to the right Not impact the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the left LRAS Complete the following table by determining how each ever impacts the position of the long-run aggregate supply (LRA curve. An investment tax credit increases the rate at which firms acquire machinery and equipment. The government allows more immigration of working-age adults who find work. For environmental and safety reasons, the government requires that the country's nuclear power plants be permanently shut down. Direction of LRAS Curve Shift 3
Transcribed Image Text:Using the purple points (diamond symbol) plot the econom long-run aggregate supply (LRAS) curve on the graph. ? PRICE LEVEL 132 128 124 120 116 112 108 104 100 0 10 20 30 40 50 60 70 OUTPUT (Billions of dollars) 80 90 100 Suppose now the government passes a law that significa increases the minimum wage. This change in policy will cause the natural rate of unemployment to, which will: O Shift the long-run aggregate supply curve to the right Not impact the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the left LRAS Complete the following table by determining how each ever impacts the position of the long-run aggregate supply (LRA curve. An investment tax credit increases the rate at which firms acquire machinery and equipment. The government allows more immigration of working-age adults who find work. For environmental and safety reasons, the government requires that the country's nuclear power plants be permanently shut down. Direction of LRAS Curve Shift 3
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