4 . The slope and position of the long-run aggregate supply curve

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 size of the labor force

___The level of technological knowledge

___The price level

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.

\fif] .5- purple pram ti: ('5'): m 5- F] a" .3 3/171 12!] 11B PRICE LEVEL 1'12 103 104 11111 [1 1!! 2'0 3U 40 5] En Tu ED OUTPUT {Billions of dollars}