Suppose that velocity is constant and the economys output, Econometrics

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Suppose that velocity is constant and the economys output

Suppose that this year's money supply is $500 billion, nominal GDP is 10 trillion and real GDP is $5 trillion.

a) What is the price level? what is the velocity of money?

b) Suppose that velocity is constant and the economy's output of good and services rised by 5% each year, what will happen to nominal GPD and the price level next year if the Fed keeps the money supply constant?

c) what money supply should the Fed set next year if it wants to keep the price level constant?

d)What money supply should the fed set next year if it wants inflation of 10%?

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Econometrics: Suppose that velocity is constant and the economys output

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Econometrics: Suppose that velocity is constant and the economys output

Reference No:- TGS0577389

Have a Question? (oR Write a Review)

Recent Questions Asked Econometrics

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Request for Solution File

Ask an Expert for Answer!!

Econometrics: Suppose that velocity is constant and the economys output

Reference No:- TGS0577389

Recent Questions Asked Econometrics

Q : Suppose that the production of crayons q is conducted at

Q : The 1h nmr spectrum contains a triplet at 108 ppm 3h a

Q : Consider a monopolist facing a demand curve given by p 20

Q : Methane flowing at 2 molmin is adiabatically compressed

Q : Suppose that velocity is constant and the economys output

Q : A 500- kg ice boat moves on runners on essentially

Q : Methane flowing at 2 molmin is adiabatically compressed

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Q : You obtain an unknown acid you weigh out 856 grams of it

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