The economy is at the natural rate of unemployment

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Starting from long-run equilibrium, graphically illustrate and explain what happens to the equilibrium price level, equilibrium level of real GDP and the unemployment rate in response to an increase in technology. Is it reasonable to conclude that the economy is at the natural rate of unemployment?

Starting from long-run equilibrium, graphically illustrate and explain what happens to the equilibrium price level, equilibrium level of real GDP and the unemployment rate if labor productivity rises and there is an increase in business expectations. How would you describe this outcome? Is it reasonable to conclude that the economy is at the natural rate of unemployment?

Starting from long-run equilibrium, graphically illustrate and explain what happens to the equilibrium price level, equilibrium level of real GDP and the unemployment rate if consumer expectation rises and there is an increase in wages. How would you describe this outcome? Is it reasonable to conclude that the economy is at the natural rate of unemployment?

Reference no: EM131004632

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