1. In the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve.
Direction of LRAS Curve Shift
The government allows more immigration of working-age adults. Right
A scientific breakthrough significantly increases food production per acre of farmland. (LEFT OR RIGHT)
A government-sponsored training program increases the skill level of the workforce. ( LEFT OR RIGHT)
2. 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.
