Determine nominal & real demand for money., Macroeconomics

Suppose that the quantity theory of money holds & the velocity of money are constant at 5. Output is fixed at its full employment value of 10,000 & the price level is 2.

a) Verify nominal & real demand for money.

b) In the similar economy the government fixes the nominal money supply at 5000. With output fixed at its full employment level & with the assumption that prices are flexible, what will be the price level?

 

Posted Date: 6/29/2013 8:01:02 AM | Location : United States







Related Discussions:- Determine nominal & real demand for money., Assignment Help, Ask Question on Determine nominal & real demand for money., Get Answer, Expert's Help, Determine nominal & real demand for money. Discussions

Write discussion on Determine nominal & real demand for money.
Your posts are moderated
Related Questions
The city of Johnstown decides to build a new stadium to attract a basketball team from the city of Rosendale.  One economic advisor suggests that the stadium should be fi

determinants of money supply

assessment of interest rate in the economy of south africa, unemployment

Members of the Organization for Economic Cooperation and Development are: 20 countries formerly signed the Convention on the Organization for Economic Co-operation and Develop

What are the important aspects in tracking the macro-economy? Important aspects in tracking the macro-economy: a. How economists utilizes aggregate measures to track the pre

Explain the meaning of a production possibilities curve

In order to estimate the VAR, I have firstly to specify the data which will be analysed. As it is my aim to observe the correlations between oil prices and key macroeconomic variab

An owner can lease her building for $100,000 per year for the next three years. The explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000. All reve

provide data and analysis for the real GDP (as total and per capita) and its growth rate then draw a graph and identify the periods of the Malaysia’s business cycle 2007 -2011

List and briefly describe the principal causes of high population growth in developing countries and the major consequences.