Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increase in money growth will affect which of the following? Check all that apply. Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $70 billion. Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph. PRICE LEVEL 132 128 124 120 116+ 112 + 108 104 The level of technological knowledge The price level. The inflation rate The quantity of physical capital 100 0 10 20 30 40 50 60 70 OUTPUT (Billions of dollars) 80 90 100 LRAS

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Please answer everything in the photos including the graph.
Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increase in money growth will affect
which of the following? Check all that apply.
Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $70 billion.
Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph.
PRICE LEVEL
132
128
124
120
116
112 +
108
104
The level of technological knowledge
The price level.
The inflation rate
The quantity of physical capital
100
0
10
20
30 40 50 60 70
OUTPUT (Billions of dollars)
80
90 100
LRAS
Transcribed Image Text:Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the long run, this increase in money growth will affect which of the following? Check all that apply. Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $70 billion. Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph. PRICE LEVEL 132 128 124 120 116 112 + 108 104 The level of technological knowledge The price level. The inflation rate The quantity of physical capital 100 0 10 20 30 40 50 60 70 OUTPUT (Billions of dollars) 80 90 100 LRAS
Suppose now the government passes a law that significantly increases the minimum wage. This change in policy will cause the natural rate of
unemployment to , which will:
O Not impact the long-run aggregate supply curve
O Shift the long-run aggregate supply curve to the right
O Shift the long-run aggregate supply curve to the left
Complete the following table by determining how each event impacts the position of the long-run aggregate supply (LRAS) curve.
Direction of LRAS Curve Shift
A government-sponsored training program increases the skill level of the workforce.
The government allows more immigration of working-age adults who find work.
This economy's primary source of foreign oil decides to cease exports for political reasons.
Transcribed Image Text:Suppose now the government passes a law that significantly increases the minimum wage. This change in policy will cause the natural rate of unemployment to , which will: O Not impact the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the right O Shift the long-run aggregate supply curve to the left Complete the following table by determining how each event impacts the position of the long-run aggregate supply (LRAS) curve. Direction of LRAS Curve Shift A government-sponsored training program increases the skill level of the workforce. The government allows more immigration of working-age adults who find work. This economy's primary source of foreign oil decides to cease exports for political reasons.
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