Reference no: EM131377275

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 price level The level of technological knowledge The inflation rate The size of the labor force Suppose the economy produces real GDP of $50 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. LRAS 0 10 20 30 40 50 60 70 80 132 128 124 120 116 112 108 104 100 PRICE LEVEL OUTPUT (Billions of dollars) 20, 116 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 tofall , which will: Shift the long-run aggregate supply curve to the right Shift the long-run aggregate supply curve to the left Not affect the long-run aggregate supply curve In the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve. Direction of LRAS Curve Shift Many workers leave to pursue more lucrative careers in foreign economies. For environmental and safety reasons, the government requires that the country's nuclear power plants be permanently shut down. An investment tax credit increases the rate at which firms acquire machinery and equipment.