What was the average annual inflation rate

Assignment Help Microeconomics
Reference no: EM131023254

[Applying the equation of exchange] Go to the Web site of the Federal Reserve Bank of St. Louis (research. stlouisfed .org/fred2/) and find the most recent values and values from the same quarter 10 years earlier for the following three variables: (1) Real Gross Domestic Product (GDPC1), (2) the GDP Price Deflator (GDPDEF), and (3) the M2 Money Stock (M2SL).

a. Using these data, calculate the average annual rate of change in both real GDP and M2 over this 10-year period.

b. If we assume that velocity was constant during this period, what was the average annual inflation rate?

c. Using the GDP Price Deflator data, calculate the average annual inflation rate over this 10-year period.

d. Use your answers to parts (b) and (c) to discuss what must have happened to velocity during this period.

Reference no: EM131023254

Previous Q& A

  Leveraged recapitalization-issuing debt-repurchasing stock

Hubbard Industires is an all-equity firm whose shares have an expected return of 9.9%. Hubbard does a leveraged recapitalization, issuing debt and repurchasing stock, until its debt-equity ratio is 0.54. Due to the increased risk, shareholders now ex..

  Insurance claims are processed in abundance

Imagine the health organizations, such as doctors, hospitals, etc. Insurance claims are processed in abundance. It takes approximately 30-60 days for payment to be received. Afterwards, there might be an error in processing or coverage, which would h..

  Sources of evidence and search strategies

You should have a full understanding of what evidence-based management is and its importance to an organization. In addition, you have learned about the importance of having credible sources that support decision making. This discussion focuses on th..

  Which bond fund has higher risk

Which bond fund has higher risk (all else being equal): a fund with an average maturity of 10 years, or a fund with an average duration of 9 years?

  Explain your strategy for solving the problem

During the play, each player, in turn, draws a question at random from a stack of questions. The player then answers the question based on the cards that he /she sees (not the player's cards, which the player cannot see).

  Calculate m1 and m2 for both periods

Using these data, calculate M1 and M2 for both periods. Describe how M1 velocity and M2 velocity differ in the two quarters.

  What would happen to the values of m1 and m2

What are Retail Money Funds? What percentage of M2 are they? If households were to shift funds from savings accounts to checking accounts, what would happen to the values of M1 and M2?

  Provide a functional geometric design layout plan

Discuss other considerations that affect the decision about the type of intersection control and the overall functional design of the intersection - Calculate the capacity and degree of saturation of the main movements at the existing unsignalised..

  How else could they have bought and sold goods

During the Civil War, the Confederate States of America printed large amounts of its own currency- Confederate dollars-to fund the war. By the end of the war, the Confederate government had printed nearly 1.5 billion paper dollars. How would such ..

  The account immediately after you make the first withdrawal

To complete your last year in business school and then go through law school, you will need $10,000 per year for 4 years, starting next year (that is you will need to withdraw the first $10,000 one year from today). How much will be in the account im..

Reviews

Write a Review

 

Similar Q& A

  What is the effective interest rate per year

College Financial Sources, which makes small loans to college students, offers to lend $500. The borrower is required to pay $40 at the end of each week for 16 weeks. Find the interest rate per week. What is the nominal interest rate per year

  Application of hazmat regulations to society

Discuss objectively the need for and the application of Hazmat regulations to society.

  Analyze the effects of a temporary tax cut

Use the DD-AA diagram to analyze the effects of a temporary tax cut on income and the current account.

  How measure the opportunity cost of producing a good

How can we measure the opportunity cost of producing a good? Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer.

  Compute elasticities for each independent variable

Your supervisor has asked you to compute the elasticities for each independent variable - Compute the elasticities for each independent variable.

  The united states has had the significant trade imbalance

the united states has had a significant trade imbalance for several years. what are the problems associated with

  Explain the types of barriers to entry and describe whether

discuss the types of barriers to entry and explain whether each type is likely to provide long-term monopoly power.

  What are the conditions for an oligopolistic market

What are the conditions for an oligopolistic market? How would you explain the differences among these market structures? Identify which market structure your organization competes in and why you think so.

  Formulate this as an lp

Assume that the farmer works to maximize net revenue (gross revenue minus vari- able costs) from the production of these four crops. Formulate this as an LP.

  Explain what principles of economics relate to the decision

Critical Thinking: Last year Congress passed a bill creating a new national health care system that is not yet fully explained. What principles of economics relate to this decision Describe how each relates and what issues must we consider.

  Determine the breakeven quantity

Labor and other operating costs are es- timated to be $35,000 per year over the study pe- riod of 5 years. Salvage is estimated at 10% of first cost and i = 12% per year. Neglect the element of availability (a) to determine the breakeven quantity,..

  Calculate the optimal quantity and the consumer surplus

Let the inverse demand curve for tennis classes is: P = 90 - 1.5Q. If the equilibrium price is $15, calculate the optimal quantity and the consumer surplus. If price increase to $30, calculate the optimal quantity and the new consumer surplus.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd