Suppose nominal GDP is $2,000 a year and the quantity of money is $400. Then the velocity of circulation equals A. 5. B. 10. C. 1/5. D. 8. E.
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- Assume GDP is currently $10,850 billion per year and the quantity of money is $833 billion. What is the velocity of money?Suppose that the Price level = 115, Supply of Money = $60 billion, and Real GDP = $12 billion. What does the velocity of money equal? Select one: a. 30 b. 23 c. 20 d. 18 e. 15If the GDP price index is 150, real GDP is $10 trillion, and the quantity of money is $5 trillion, what is the velocity of circulation? The velocity of circulation is ____ Thank you!!
- If the GDP price index is 150, real GDP is $10 trillion, and the quantity of money is $5 trillion, what is the velocity of circulation? The velocity of circulation is ____?Assuming the growth rate in the velocity of money is 5$. If real GDP grows by 10% this year, and if the money supply does not change this year, how much does the price level change by? a) -5 b)-10 c) 5 d) 10Discuss what hyperinflation is. What does hyperinflation do to an economy and society? In other words, how does it change the way people live their lives and transact business? Is hyperinflation something we want for the U.S. economy? Discuss in 4 to 5 complete and well-written sentences?
- An economy is at full employment. The quantity of money is growing at 8.3 percent a year, the nominal interest rate is 9.5 percent a year, real GDP is growing at 5.0 percent a year, and the inflation rate is 3.1 percent a year. What is the change in the velocity of circulation? Why might it be changing? The velocity of circulation is _______. A. increasing by 3.1 percent a year B. decreasing by 0.2 percent a year C. increasing by 0.2 percent a year D. constantIf the velocity of circulation is growing at 1 percent a year, the real inter- est rate is 2 percent a year, the nominal interest rate is 7 percent a year, and the growth rate of real GDP is 3 percent a year, calculate the inflation rate, the growth rate of money, and the growth rate of nominal GDP.If nominal GDP is $400, real GDP is $200, and the money supply is $100, then what is the price level and the velocity of money? Show the calculation!
- Which of the following would indicate that the dollar amount being analyzed is money? a. M1 money stock of $1.4 trillion at the end of 2010 b. The first quarter of 2002 c. Microsoft profits of $500 billion in 2010 d. Nominal GDP in 2010 of $14.7 trillionReal GDP and the velocity of circulation are constant. What is the change in the price level in the long run if the quantity of money increases by 3 percent a year? The change in the price level is ______ percent a year in the long run. >>> If the price level decreases, the answer is negative and must include a minus sign. If the price level increases, the answer is positive and must not include a plus sign.Q40 If the economy is at potential GDP and the SARB increases the quantity of money, then Select one: a. potential GDP and real GDP both decrease. b. potential GDP rises. c. real GDP rises temporarily above potential GDP. d. real GDP rises permanently above potential GDP.
