If nominal GDP is $900 billion and, on average, each dollar is spent three times in the economy over a year, then the quantity of money demanded for transactions purposes will be Multiple Choice 300 600 900 2,700 450

Q: What will be the National income at current price if current price is $300 and the current quantity…

A: The information being given is:- Current price in economy = $300 Current quantity= 2000 units  We…

Q: What is the gain or loss on purchasing power for 2021? (if LOSS, put a negative (-) sign before the…

A: Answer-   Consumer Price Index :- It is the a measure which help calculate the change in price level…

Q: multipler to be Mgov1.2s. The curren OP is $15.18 trillion and the government is planning to…

A: Given multiplier value = 1.25 Current GDp = 15.18 Trillion $ Increase in government spending = 800…

Q: Assuming that the Consumer Price Index increases from 100 to 120... Group of answer choices Less…

A: Consumer price index is a measure to calculate the increase in cost of basket of goods and services.

Q: AS3 AS1 AS2 Real Domestic Output, GDP In the diagram, a shift from AS1 to AS3 might be caused by…

A: The decrease in Aggregate supply or leftward shift in AS curve will be caused by any factors that…

Q: Please place all of the items that would make the given statement true. If the item would create a…

A: In an economy, when computing national income, there are various components that influence the value…

Q: Suppose that real domestic output in an economy is 100 units, the quanity of inputs is 10, and the…

A: Cost of Production is the spending that is incurred on inputs like labor, capital, and other raw…

Q: Assuming that GDP is fixed, fill in the missing values for Total Amount of Money Demanded…

A: Transaction demand for money remains the same at each interest rate. Asset demand for money is…

Q: basket is $8.00. From year one to year two, there is    at an annual rate of    .   In year one,…

A: Given : Cost of basket in year 1=$9 Cost of basket in year 2=$8 Income level=$90

Q: When the inflation rate rises, the purchasing power of nominal income. Single choice. a. remains…

A: 1st question cannot be answered as required graph is missing.

Q: Explain the process of Conversion from Constant to Actual Dollars?

A: The actual dollar(An) is the value of the dollar influenced by inflation. It shows the change in the…

Q: why did greece encounter staginflation in 2007-2010

A: Stagflation, often known as economic stagnation, is characterized by slow economic growth and…

Q: National savings is calculated as the sum of private and public savings. Private savings is equal to…

A: GDP is the market value of final goods and services produced by an economy during a given period of…

Q: Suppose the price level reflects the number of dollars needed to buy a basket of goods containing…

A: Inflation:Inflation refers to the quantity measure which measures the average price rise in the…

Q: weighted average TT/US dollar selling rate depreciated marginally by 0.05 percent to US$1 =…

A: Supply and demand , relationship between the amount of an item that makers have ready to move and…

Q: What are the Actual dollars and Constant dollars?

A: The actual dollar is the value of dollars which is calculated after adjusting the inflation or…

Q: The COVID-19 Pandemic is a thing of the past and consumer income has increased. As a result we can…

A: Consumption spending is that part of the aggregate demand which represents the acquisition of goods…

Q: The fresh deposits at the bank is $25000 and the LRR is 20% Calculate the total money created in…

A: LRR refers to legal reserve ratio. It is the percentage of deposits that the banks are required to…

Q: If real gross domestic product is R350 billion and planned aggregate expenditure is R275 billion,…

A: Introduction Real GDP tells about the total production producing in an economy. Here, real GDP is…

Q: Consider the following table: Billions of dollars $13,300 1,450 1,250 GDP Depreciation Corporate…

A: Note:- Since we can only answer one question at a time and the exact one is not specified, we'll…

Q: Question   a.Calculate GDP Deflator for all three years. b.Calculate Inflation rate in year 2 and…

A: GDP is the market value of all goods and services produced in an economy. GDP Deflator is a measure…

Q: The adjustment process for an economy experiencing an inflationary gap involves wages, unit costs…

A: The inflationary gap is a type of GDP or output gap, it refers to the difference between actual GDP…

Q: Describe the method of Actual-Dollar Analysis?

A: The actual –dollar analysis is one of the approaches which is used to find equivalence calculation…

Q: The Bureau of economic analysis announced today that gross domestic product, the widest measure…

A: Gross domestic product (GDP) is the sum of the market value of all final goods and services produced…

Q: The average cell phone from today has many more features than a cell phone from 10 years ago.  The…

A: CPI(Consumer price index) is a method to analyze the changes in the level of prices(inflation) in an…

Q: Other things being equal , an exogenous rise in the domestic price level will. A) have no effect on…

A: An increase in domestic price implies the goods have become expensive now. This indirectly decreases…

Q: The purchasing power of the U.S. dollar is ( directly, inversely ) related to the price level: when…

A: The purchasing power of the US dollar is the number of goods and services a consumer can buy with a…

Q: The purchasing power (real value of money) decreases if inflation is present in the economy. For…

A: The purchasing power of​ $R after t years of 6 ​% inflation is given by the model: P = R(0.94t)…

Q: Calculate MPC when MPS is given to be as 0.9

A: # We know well that the sum of MPS and MPC is given as 1 MPS + MPC = 1

Q: Acme Manufacturing is producing $4,020,000 worth of goods this year and expects to sell its entire…

A: The investment consist of two components: new investments which is called net investment and net…

Q: Demand for final consumption arises in Household sector only

A: To find : When do demand for final consumption arises.

Q: True or False: Personal Consumption Expenditures account for about 25% of GDP. Spending on Consumer…

A: Three methods of Gross Domestic Product calculation are income method, expenditure method and value…

Q: "The national-level saving rate is important from a macroeconomic perspective, in he sense that…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: if the value of GDP in other countries decreases. c) Resale does not increase the GDP.

A: a. Value added is defined as the gross receipts of a firm minus the cost of goods and services being…

Q: Economics Consider the following estimated model based on quarterly data of Australian manufacturing…

A: Given, EXP^t=-5.38+0.191Yt+0.0216FDIt-1+2.61t Given also, In order to estimate the exports in…

Q: Assume that over the last 10 years the gross domestic product of Econostan increased by 25% while…

A: Gross domestic product(GDP) of a country refers to the market/monetary value/worth of all the goods…

Q: How much did RGDP increase from 2006 to 2007, using 2004 as the base price year?

A: RGDP is the real gross domestic product. It is calculated by multiplying the quantity of goods…

Q: What is the difference between Actual Dollars and Constant Dollars?

A: The nominal value of an economic variable is the face value calculated in terms of money whereas the…

Q: A vacuum cleaner dealership sold 440 units in 2011 and 423 units in 2012. Find the percent increase…

A: Percentage change=Year2012-Year2011Year2011                            =423-440440…

Q: A few weeks ago, President Biden introduced a $2 trillion plan to fix America's infrastructure and…

A: According to me, already America is a developed economy when it comes to basic infrastructure but…

Q: Table 24-4. Will's expenditures on food for three consecutive years, along with other values, are…

A: An expenditure is a monetary payment for goods or services made using cash or credit. Unlike a cost…

Q: All Numbers are in S Billion Output Consumption Income Spending Net Taxes 100 Investment Government…

A: In an economy, unplanned inventory refers to the amount of output gap between the actual output and…

Q: f nominal GDP is $1,200 billion and, on average, each dollar is spent three times in the economy…

A: Gross domestic product (GDP) is the standard proportion of the worth added made through the creation…

Q: Find the value of national disposal income if National consumption expenditure is $230 million and…

A: The information being given to us is as follows:- National consumption expenditure = $230 million…

Q: Which of the following statements is true?a. Deflation is an increase in the general level…

A: A is FALSE as deflation is a decrease in the general level of prices. C is FALSE as disinflation is…

Q: Assume the consumer price index (CPI) in 2018 was 95, in 2019 the CPI was 100, and in 2020 the CPI…

A: Correct: c. 5%

Q: A nominal value can increase when either prices or quantities or both increase. Select one: True…

A: A nominal value is an unadjusted value whereas the real value is an adjusted value.