Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money

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Suppose The Fed Doubles The Growth Rate Of The Quantity Of Money In The Economy In The Long Run The Increase In Money 1 (49.35 KiB) Viewed 48 times

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. 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. PRICE LEVEL 132 128 124 120 116 112 108 The quantity of physical capital The size of the labor force The inflation rate The price level 104 100 0 + 10 20 30 40 50 OUTPUT (Billions of dollars) 60 70 80 Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment to which will: Shift the long-run aggregate supply curve to the left LRAS Not affect the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the right In the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve. Many workers leave to pursue more lucrative careers in foreign economies. A scientific breakthrough significantly increases food production per acre of farmland. A government-sponsored training program increases the skill level of the workforce. Direction of LRAS Curve Shift