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 price level

The inflation rate

The quantity of physical capital

The size of the labor force

Suppose the economy produces real GDP of $70 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 left

Shift the long-run aggregate supply curve to the right

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.

Direction of LRAS Curve Shift

The government allows more immigration of working-age adults.                

This economy's primary source of foreign oil decides to cease exports for political reasons.             

A government-sponsored training program increases the skill level of the workforce.