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- Question: Consider an economy where the velocity of money is constant, and the economy is at full employment. If the central bank decides to increase the money supply by 5% but at the same time, the government imposes new taxes that effectively remove 5% of the consumers' disposable income, what would be the likely short-term effect on the nominal Gross Domestic Product (GDP) and the general price level? A) Nominal GDP remains unchanged; the general price level increases. B) Nominal GDP increases; the general price level remains unchanged. C) Nominal GDP remains unchanged; the general price level decreases. D) Nominal GDP increases; the general price level increases. Please don't use chatgpt it is giving wrong answer. Please try do it with yourself.Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2018, the money supply was $360, the price of a pie was $9.00, and the economy produced 800 pies. NOTE: for YEAR 2019, Price Level (Dollars), the choices are (0.47 OR 9.00 OR 9.45 OR 0.50) nominal GDP options for YEAR 2018 are (85.00 OR 7,560.00 OR 7,200.00 OR 89.00) nominal GDP options for YEAR 2019 are (89.00 OR 85.00 OR 7,560.00 OR 7,200.00 ) NOTE: The money supply grew at a rate of _________ (2.44% OR 1.13% OR 5% OR 105%) from 2018 to 2019. Since pie output did not change from 2018 to 2019 and the velocity of money _______ (increased OR decreased OR remained the same), the change in the money supply was reflected ________ (partially OR entirely) in changes in the price level. The inflation rate from 2018 to 2019 was ________ (5% OR 2.44% OR 105% OR 1.13%)In the year of 2019, the U.S. economy produced a total output of $20.75 trillion. During the same year, the U.S. federal government spent $7.88 trillion. The desired consumption and desired investment in the U.S. for the year is described by: Cd=15-150r, Id=10-200r Where Cd is the desired consumption in trillions of $, Id is the desired investment in trillions of $, and r is the real interest rate in decimal form. if the average real interest rate during the year 2019, is 4.1%, how much is the desired national saving, Sd, in trillions of $? round answer to at least 2 decimal places.
- How am I supposed to plot a figure thats not even on the graph and What are the answers to the questions that were not answered. These questions: Suppose that for every increase in the interest rate of one percentage point, the level of investment spending declines by $0.5 billion. Based on the changes made to the money market in the previous scenario, the new interest rate causes the level of investment spending to by . Taking the multiplier effect into account, the change in investment spending will cause the quantity of output demanded to by at every price level. The impact of an increase in government purchases on the interest rate and the level of investment spending is known as the effect. Use the purple line (diamond symbol) on the graph at the beginning of this problem to show the aggregate demand curve (AD3AD3) after accounting for the impact of the increase in government purchases on the interest rate and the level of…Q2.In each of the following, calculate private, public and national savings and the national savings rate. Given that: Household savings = 200 Business savings = 400 Government purchases = 100 Government transfers = 100 Tax collections = 150 Gross Domestic Product = 2,20030. When the Bank of Canada buys government securities, exportsA) increase and imports decrease, so net exports increase.B) and imports both increase, so the effect on net exports is unclear.C) decrease and imports increase, so net exports decrease.D) and imports both decrease, so the effect on net exports is unclear.E) and imports both increase, so net exports increase.
- The interest rate effect. Which sentence is true? is the change in investment spending and government purchases caused by changes in money demand. is the change in exports and imports resulting from changes in the interest rate caused by changes in the aggregate price level. is the change in interest rates caused by changes to government purchases. is the change in consumer and investment spending due to changes in interest rates resulting from changes in the aggregate price level. is the change in real GDP caused by the Federal Reserve adjusting target interest rates.On a diagram, demonstrate the effects of (I) a fall in investment and (II) a fall in the money supply. What does the size of the fall in national income depend on? (Your answer should be 100 words ±10%)Other things the same, as the price level rises, the real value of a dollar Answer rises, and interest rates rise. rises, and interest rates fall. falls, and interest rates rise. falls, and interest rates fall.
- In australian circular flow of income, Are the following net injections, net withdrawals or neither? 1. Firms are forced to take a cut in profits to give a pay rise 2. Firms spend money on research 3. The government increases tax free threshhold 4. The general public spend more money in credit unions 5. Australian investors earn higher dividends on overseas invetments 6. The government purchases US military aircrafts 7. People draw on their savings to finance holiday overseas 8. people draw on their savings to finance holidays in Australia 9. The government runs a budget deficit and finance it by borrowing from general public 10. The government runs a budget deficit and finance it by priniting more money30: In a given economy, families save 10% of their salaries; the current annual taxation rate is 25%; arranged speculations are relied upon to be $ 60 billion; and the import / export imbalance is about $ 2.5 billion. Current government consumptions are $ 270 billion every year. The full limit GNP level is $ 1,060 billion. What is the current shortage? What is the full employment shortfall? Look at the two. Is the current financial plan expansionary or on the other hand contractionary? Clarify.Compute Public savings, taxes, private saving, national saving, and investment based on the following information: GDP = 15 Trillion Consumption = 7.8 Trillion Government spending = 1 Trillion Budget Deficit = 600 Billion Define catch-up Effect along with relevant examples? Describe the problems associated with the Consumer price index?