Suppose that an economy is characterized by M = $9 trillion V = 1.6 P = base index = 1.0 Instructions: Enter your responses rounded to two decimal places (do not include a negative sign (-) with your answers). a. What is the real value of output (Q)? $ trillion Now assume that the Fed increases the money supply by 20 percent and velocity remains unchanged. b. If the price level remains constant, by how much will real output increase? $ trillion c. If, instead, real output is fixed at the natural level of unemployment (= Q from part a), by how much will prices increase in percentage terms? % d. By how much would V have to decrease to offset the increase in M (assuming Q and P did not change)?
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 10:50, lindalu
Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.
Answers: 3
Business, 22.06.2019 14:20, Champion9701
For the year ended december 31, a company has revenues of $323,000 and expenses of $199,000. the company paid $52,400 in dividends during the year. the balance in the retained earnings account before closing is $87,000. which of the following entries would be used to close the dividends account?
Answers: 3
Business, 22.06.2019 17:00, staffordkimberly
Explain how can you avoid conflict by adjusting
Answers: 1
You know the right answer?
Suppose that an economy is characterized by M = $9 trillion V = 1.6 P = base index = 1.0 Instruction...
Questions in other subjects:
Biology, 29.09.2019 07:50
