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5. The long-run aggregate supply curve Aa Aa Suppose the hypothetical economy of Larryopia produces real GDP of $40 billion when unemployment is at its natural rate. Use the purple line (diamond symbols) to plot the economys long-run aggregate supply (LRAS) curve in the following graph. Then place a black point (X symbol) on the point representing the equilibrium price and output level. PRICE LEVEL 132 128 124 120 116 112 108 104 100 LRAS Equilibrium 0 10 20 30 40 50 60 70 80 INCOME, OUTPUT (Billions of dollars)Help Clear AllThe long-run equilibrium level of output is determined by (changes in the price level, consumer demand, capital, labor, and technology); Therefore it will (increase to a new equilibrium, remain at the full-employment level, decrease to a new equilibrium) if the aggregate demand curve shifts to the right.

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