3. The slope and position of the long-run aggregate supply curveSuppose 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.132128LRAS1241201161121081041001020304050607080OUTPUT (Billions of dollars)Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemploymenttoThis will result in which of the following?PRICE LEVEL 1201161121081041001020304050607080OUTPUT (Billions of dollars)Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemploymentto. This will result in which of the following?A shift the long-run aggregate supply curve to the rightNo effect on the long-run aggregate supply curveA shift the long-run aggregate supply curve to the leftLeftNo shiftIn the following table, determine how each event affects the position of the long-run aggregate supply (LRightDirectionCurve ShiftThe government allows more immigration of working-age adults.For environmental and safety reasons, the government requires that the country's nuclearpower plants be permanently shut down.A natural disaster destroys a significant amount of the economy's production facilities.PRICE LEVEL

The LRAS is a curve that shows the relationship b/w price(P) level and real GDP. This curve runs on…

This will result in which of the following? to A shift the long-run aggregate supply curve to the right No effect on the long-run aggregate supply curve A shift the long-run aggregate supply curve to the left Left No shift In the following table, determine how each event affects the position of the long-run aggregate supply (L Disbt

This will result in which of the following? to A shift the long-run aggregate supply curve to the right No effect on the long-run aggregate supply curve A shift the long-run aggregate supply curve to the left Left No shift In the following table, determine how each event affects the position of the long-run aggregate supply (L Disbt

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section23.4: The Aggregate-supply Curve

Problem 4QQ

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In 2014, the economy of Greatstown had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregated Demand Short-run Aggregate Supply Long-run aggregate supply 30 $1455 $1275 $1400 40 $1420 $1300 $1400 50 $1385 $1325 $1400 60 $1350 $1350 $1400 70 $1315 $1375 $1400 80 $1280 $1400 $1400 90 $1245 $1425 $1400 What was Greatstown’s short-run equilibrium output 2014?
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