Question

Determine whether the following changes or events would shift the LRAS curve to the right, to the left, or not at all. Items (6 items) (Drag and drop into the appropriate area below) Political instability leads to the overthrow of the government.The price level increases.The U.S. government deports a large number of illegal aliens.The government provides more generous unemployment benefits.A large new oil field is discovered off the coast of California.Microhard develops new computer hardware that doubles data transmission speeds.

Answer 1

LRAS shifts right

- A large new oil field is discovered off the coast of California.

- Microhard develops new computer hardware that doubles data transmission speeds.

LRAS shifts left

- The overthrow of the government.

- The U.S. government deports a large number of illegal aliens.

- The government provides more generous unemployment benefits.

No shift in LRAS

- The price level increases.