PRICE LEVEL https://apia.apps 0 10 20 30 40 50 60 70 80 OUTPUT (Billions of dollars) Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment to , which will: O Shift the long-run aggregate supply curve to the left O Not affect the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the right 2 132 128 124 120 116 112 108 104 100 5 LRAS

Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter33: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 7PA
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https://aplia.apps.ng.cengage.com/at/servlet/quiz?ctx=bRhaha-0031&
LRAS
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OUTPUT (Billions of dollars)
Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment to
which will:
O Shift the long-run aggregate supply curve to the left
O Not affect the long-run aggregate supply curve
O Shift the long-run aggregate supply curve to the right
O
←
PRICE LEVEL
G
132
128
124
120
116
112
108
104
100
Transcribed Image Text:https://aplia.apps.ng.cengage.com/at/servlet/quiz?ctx=bRhaha-0031& LRAS 0 10 20 30 40 50 60 70 80 OUTPUT (Billions of dollars) Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment to which will: O Shift the long-run aggregate supply curve to the left O Not affect the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the right O ← PRICE LEVEL G 132 128 124 120 116 112 108 104 100
5. The slope and position of the long-run aggregate supply curve
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 of
the following? Check all that apply.
The level of technological knowledge
The quantity of physical capital
The inflation rate
The price level
Suppose the economy produces real GDP of $60 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.
132
128
LRAS
124
120
7
H
a
r
i
18
O
Transcribed Image Text:5. The slope and position of the long-run aggregate supply curve 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 of the following? Check all that apply. The level of technological knowledge The quantity of physical capital The inflation rate The price level Suppose the economy produces real GDP of $60 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. 132 128 LRAS 124 120 7 H a r i 18 O
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