Question

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. 

• The quantity of physical capital 

• The price level 

• The inflation rate 

• The level of technological knowledge

  
  

Suppose the economy produces real GDP of $ 60 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.

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 right

• Shift the long-run aggregate supply curve to the left

• Not affect the long-run aggregate supply curve

In the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve.

• The government allows more immigration of working-age adults who find work.

• For environmental and safety reasons, the government requires that the country's nuclear power plants be permanently shut down.

• An investment tax credit increases the rate at which firms acquire machinery and equipment.

Answer 1

Answer 2

the only thing wrong is on the 1st answer should be both (the inflation rate & the price level)