ch 17 problen 3

3. The long-run effects of monetary policy The following graphs show the state of an economy that is currently in long-run equilibrium. The first graph shows the aggregate demand (AD) and long-run aggregate supply (LRAS) curves. The second shows the long-run and short-run Phillips curves (LRPC and SRPC). PRICE LEVEL i5B0 Which of the following statements are true based on these graphs? Check ail that apply. It is impossible to determine the natural rate of unemployment from these graphs alone. The natural level of output is 6%. The natural rate of unemployment is 6%. Suppose the central bank of the economy increases the money supply. Show the long-run effects of this policy on both of the graphs by shifting the appropriate curves. The long-run effect of the central bank's policy is in the infiation rate, in the unemployment rate, and in real GDP