ONLY NEED F & I PLEASE

we = W/PL = $5500/labor/(1.1) =$5000/labor, where W is the money wage and w is the real wage and quantity of labor demanded = quantity of labor supplied (therefore, cyclical unemployment does not exist) D aggregate output demanded = 10 trillion C. aggregate output supplied = 10 trillion at equilibrium d. What would cause the LRAS curve to shift to the right 1. One thing that causes it to move to the right is productivity increase. 2. Another thing is lower inflation and high outout. e. What is the assumption about the long run that requires the LRAS curve to be drawn vertical To be drawn vertical would mean an increase in price levels. f. In this model, what will increase aggregate output supplied (a movement up the SRAS curve) 3 things that will increase output demand is g. In this model what will increase aggregate output demanded (a movement down the AD curve consumption, government spending and investments. h. Now assume AD shifts from AD' to AD , now determine the following assuming the other curves don't shift 1 new price level = 103 2. new aggregate output demanded = YD 3. new aggregate output supplied YS 4. name the macroeconomic problem that was caused by the decrease in AD curve: i using the Price level in question h, to determine the new real wage (w) where (answer: w=W/PL)=($5500/labor/1.08)=$5093/labo -O O 1 new quantity demanded for labor = 2. new quantity supplied for labor= O 3. Name the problem in the labor market Cyclical Unemployment problem since quantity of labor demanded is less than (