Fill in the table, and use it to answer the following questions. 2015 2016 Quantity of Money €300 €336 Velocity of Money 20 Price Level €7.50 € Quantity of Output 800 800 In 2015, nominal GDP was € whereas in 2016, nominal GDP was € The money supply grew at a rate of % from 2015 to 2016. Since the velocity of money , the change in the money supply caused nominal GDP to grow by %. Moreover, since apple output did not change from 2015 to 2016, the change in money supply was reflected in changes in the price level. The inflation rate from 2015 to 2016 was %. Which of the following caused the inflation between 2015 and 2016? An increase in the money supply O An increase in real GDP O A decrease in the velocity of money

Q: Suppose that in 1980, the U.S. inflation rate was 13 percent and the unemployment rate reached 8 per...

A: The correct answer is given in the second step .

Q: 5. The gross domestic product is: a. 86,157.5 b. 88,404.5 c. 92,925.9 d. 95,708.2 e. 82,808.5

A: The gross domestic product of a country is a measure of its economic output.Countries with higher GD...

Q: What are three errors that Ricardo made in his own work on trade theory?

A: Ricardo's theory infers that comparative benefit as opposed to absolute benefit is liable for a lot ...

Q: Cooperton and Denalla each produce two products; pots and pens. The table shows the productlon possi...

A: In Cooperton : Opportunity Cost of Pot =  2000/100 = 20 pens Opportunity Cost of pens = 100/2000 = 0...

Q: What are the goals of supply side economics? Of the potential supply side tax cuts: income, saving, ...

A: The theory of supply-side economics focuses on changing the supply of labour and products by utilisi...

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A: Given, The wage rate for cooks = $15 per hour  The rental rate on ovens = $20 an hour  The MPP for c...

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A: Consumer having rational expectations optimizes its consumption by aggregating an intertemporal budg...

Q: Suppose that in Japan, without a tariff 10,000 cars will be sold per year at an equilibrium price of...

A: Given: Without tariff: 10,000 cars will be sold per year at an equilibrium price of $20,000 With tar...

Q: If a country chose to produce twice as many wooden chairs as before, how would that affect its produ...

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Q: 2. This is a continuation of the previous problem. Suppose a Primary Metals company's ratio of PL to...

A: Given, Q = 1200 units PL/PK = 1.40 At optimum, MRTS = PL/PK = 1.40  

Q: Which of the following can expand a nation's production possibilities boundary (curve)? [select all...

A: The curve that depicts various quantities of goods and services that could be produced using the giv...

Q: Suppose a firm builds a larger plant and increases its output. Which of the following statements is ...

A: If a firm builds new plants and increases its output, it moves from diseconomies of scale to economi...

Q: 6. An economy shows the following features : Consumption, C= 50 + 0.9 (Y – T) Tax Revenue, T= 100 In...

A: Y = C+I+G+NX Y = National income or GDP C= Consumption expenditure I = Investment expenditure G= Gov...

Q: Below are the overtime hours (O) worked by 3 employees an an Office. Calculate var(O). (3 significan...

A: Variance A statistical assessment of the dispersion between values in a data collection is known as ...

Q: If expected inflation is rising, how does it affect the bond prices and yields to maturity in the se...

A: The general rise experienced in prices of goods and services over a period of time in the economy is...

Q: Foreign entities O a) typically require a smaller inflation premium than domestic borrowers. O b) ty...

A: The funds that are available for borrowing money in the economy are known as loanable funds. These c...

Q: 1 Francesca buys pencils and erasers at 10$ and 9$ per amount. Francesca has an income of 90$. There...

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Q: The bonds sold by the U.S. government to pay for the national debt are called a) Treasury securities...

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Q: 8:55 PM Assignment Print View c. When the total money supply decreases, there will be an adjustment ...

A:   Sff1 - New supply of federal fund. Sff - supply of federal fund

Q: What challenges faced by the financial services commission of Jamaica

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A: The rate that depicts the rate in which the value of currencies is measured in terms of another curr...

Q: Consider a strategic interaction between firms 1 and 2. In Stage 1, firm 1 chooses the level of adve...

A: Aggregate demand function : P = 6a - q1  - q2  In a simultaneous profit maximizing  game both firms ...

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Q: In developed countries, which one is correct?   a Market income inequality > Final distribution of...

A:

Q: Sector-biased technological progress cannot explain that both skill premium and skilled labour inten...

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Q: 1. DARPA is planning to purchase a new machine. The initial investment required for this is $60,000....

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Q: Predict how each of the following economic changes will affect the equilibrium price and quantity in...

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Q: 2. Assume the following equations summarize the structure of an economy. C=Ca+0.85 (Y –T) C2= 260 – ...

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Q: This module considers important concepts in economics: Total Utility, Marginal Utility, Diminishing ...

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Q: 9. If you believe that stock prices follow a random walk, then probably you a. do not believe that t...

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Q: Question. Suppose in an economy, autonomous investment (1) is $ 600 crores and the following consump...

A: Answer:   Hence income i.e I = 600

Q: D02

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