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. -The inflation rate -The size of the labor force -The quantity of physical capital -The price level 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. Suppose now the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more quickly. This change in policy will cause the natural rate of unemployment to (increase/fall/decrease) , which will: - Shift the long-run aggregate supply curve to the right - Not impact the long-run aggregate supply curve - 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 the LRAS Curve ShiftA government sponsored training program increases the skill level of thw workforce (left/no shift/right)The government allows more immigration of working age adults who find work (left/no shift/right)A scientific brakthrough significantly incrases food production per acre of farmland. (left/no shift/right) Suppose now the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs morequickly. This change in policy will cause the natural rate of unemployment towhich will:Shift the long-run aggregate supply curve to the rightNot impact the long-run aggregate supply curveShift the long-run aggregate supply curve to the leftComplete the following table by determining how each event impacts the position of the long-run aggregate supply (LRAS) curve.A government-sponsored training program increases the skill level of the workforce.The government allows more immigration of working-age adults who find work.A scientific breakthrough significantly increases food production per acre of farmland.Direction of LRAS Curve Shift Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph.PRICE LEVEL1321281241201161121081041000102030 40 50 60 70OUTPUT (Billions of dollars)8090 100LRASShift the long-run aggregate supply curve to the rightNot impact the long-run aggregate supply curveShift the long-run aggregate supply curve to the left?Suppose now the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs morequickly. This change in policy will cause the natural rate of unemployment towhich will:

Answered: Assume the Federal Reserve triples the…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter26: The Neoclassical Perspective

Section: Chapter Questions

Problem 21P: Use Table 26.3 to answer the following questions. Sketch an aggregate supply and aggregate demand...

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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.

-The inflation rate

-The size of the labor force

-The quantity of physical capital

-The price level

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.

Suppose now the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more quickly. This change in policy will cause the natural rate of unemployment to (increase/fall/decrease) , which will:

- Shift the long-run aggregate supply curve to the right

- Not impact the long-run aggregate supply curve

- 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 the LRAS Curve Shift

A government sponsored training program increases the skill level of thw workforce (left/no shift/right)

The government allows more immigration of working age adults who find work (left/no shift/right)

A scientific brakthrough significantly incrases food production per acre of farmland. (left/no shift/right)

Suppose now the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more
quickly. This change in policy will cause the natural rate of unemployment to
which will:
Shift the long-run aggregate supply curve to the right
Not impact the long-run aggregate supply curve
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.
A government-sponsored training program increases the skill level of the workforce.
The government allows more immigration of working-age adults who find work.
A scientific breakthrough significantly increases food production per acre of farmland.
Direction of LRAS Curve Shift

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
100
0
10
20
30 40 50 60 70
OUTPUT (Billions of dollars)
80
90 100
LRAS
Shift the long-run aggregate supply curve to the right
Not impact the long-run aggregate supply curve
Shift the long-run aggregate supply curve to the left
?
Suppose now the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more
quickly. This change in policy will cause the natural rate of unemployment to
which will:

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