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uppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $60 billion. Using the purple points (diamond
uppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $60 billion. Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph. LRAS 0 10 20 30 40 50 60 70 80 90 100 132 128 124 120 116 112 108 104 100 PRICE LEVEL OUTPUT (Billions of dollars) Suppose now the government passes a law that significantly increases the minimum wage. This change in policy will cause the natural rate of unemployment to , which will: Shift the long-run aggregate supply curve to the left Not impact the long-run aggregate supply curve Shift the long-run aggregate supply curve to the right
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