Consider an economy where in the long run, thevelocity of money is V = 74, real output is Y = 16,and the money supply is M = 57. The price levelmust be P =_Round your answers to 2 decimal places (for example,3.454 should be rounded down to 3.45, and 3.455should be rounded up to 3.46).46 Consider a Solow economy with a productionfunction F (K, L) = Kª L¹-ª, where a = 0.2.The labor force is L = 1.The supply of capital attime zero is Ko 10. The saving rate is s = 0.8.The depreciation rate is d = 0.7. At time t = 1, thestock of capital in the economy will be K₁-Round your answers to 2 decimal places (for example,3.454 should be rounded down to 3.45, and 3.455should be rounded up to 3.46).62.84

"Since you have posted a multiple questions, we will solve first question for you. If you want…

Consider an economy where in the long run, the velocity of money is V = 74, real output is Y = 16, and the money supply is M = 57. The price level must be P = Round your answers to 2 decimal places (for example, 3.454 should be rounded down to 3.45, and 3.455 should be rounded up to 3.46). 46

Consider an economy where in the long run, the velocity of money is V = 74, real output is Y = 16, and the money supply is M = 57. The price level must be P = Round your answers to 2 decimal places (for example, 3.454 should be rounded down to 3.45, and 3.455 should be rounded up to 3.46). 46

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 5CQQ

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Question

Consider an economy where in the long run, the
velocity of money is V = 74, real output is Y = 16,
and the money supply is M = 57. The price level
must be P =_
Round your answers to 2 decimal places (for example,
3.454 should be rounded down to 3.45, and 3.455
should be rounded up to 3.46).
46

Consider a Solow economy with a production
function F (K, L) = Kª L¹-ª, where a = 0.2.
The labor force is L = 1.The supply of capital at
time zero is Ko 10. The saving rate is s = 0.8.
The depreciation rate is d = 0.7. At time t = 1, the
stock of capital in the economy will be K₁
-
Round your answers to 2 decimal places (for example,
3.454 should be rounded down to 3.45, and 3.455
should be rounded up to 3.46).
62.84

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