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 inflation rate

The price level

The level of technological knowledge

The size of the labor force

Suppose the economy produces real GDP of $40 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. 132 128 LRAS 124 120 PRICE LEVEL 116 112 108 104 100 0 10 20 30 40 50 60 70 80 OUTPUT (Billions of dollars)