4. (2 points) To answer parts a. and b. below, assume electricity production (i.e., burning fuel or using renewable ener

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4 2 Points To Answer Parts A And B Below Assume Electricity Production I E Burning Fuel Or Using Renewable Ener 1 (147.98 KiB) Viewed 9 times

4. (2 points) To answer parts a. and b. below, assume electricity production (i.e., burning fuel or using renewable energy to produce power) is an important input into a society's production. a. A decrease in electricity prices would result in an aggregate supply increase/decrease (choose one). b. An increase in electricity prices would result in an aggregate supply increase/decrease (choose one). 5. (1 point) Suppose Mexico, one of the United States' largest trading partners and a purchaser of a large quantity of U.S. exports, enters a period of rapid economic advancement and increased purchasing. Use the AD/AS model to determine the likely impact on U.S. equilibrium GDP and price level. 6. (1 point) Suppose the U.S. government passes sweeping labor reforms making it more difficult for young people to find jobs. Use the AD/AS model to explain how this would affect the equilibrium level of GDP and the price level. 7. (2 points) a. How is the natural rate of unemployment show on the graph of the AD/AS model?