Annual percentage change in velocity

Assignment Help Business Economics
Reference no: EM137087

Q1. Explain why each of the following statements is True, False, or Uncertain according to economic principles.
Suppose the economy is currently operating with a recessionary gap. If the government does nothing with regard to discretionary policy changes, national income will never recover to its potential level.

Q2. In 1947, real GDP (2005 base) in the US was 1852.7b, the GDP deflator was 13.753, and M2 was $146b. In 2012, real GDP was 13591.1b, the GDP deflator was 115.378, and M2 was $10003.4b. How well does the quantity theory with constant velocity accurately predict the annual inflation rate over this period? What would the annual percentage change in velocity have to be on average for the quantity theory to hold?

Reference no: EM137087

Questions Cloud

Equation for marginal revenue : Find the level of output with the help of calculus, Qrmax, where total revenue reaches its maximum value.
Impact on the economy : Determine the impact on the economy if the central bank in U.S. used inflation targeting.
Product functions for hardwood usage : Product Y can be sold at a profit if $100 per unit, and product K can be sold at a profit of $25 each.
Dominant strategy : Does either firm have a dominant strategy. Is there a stable equilibrium.
Annual percentage change in velocity : What would the annual percentage change in velocity have to be on average for the quantity theory to hold.
Author compensation scheme : Design an alternative author-compensation scheme under which the author and the publisher would pick the same price.
Different ferries are being considered : During the working life, how do you graph that without knowing more information.
Chicago board of trade : Why anyone would pay a positive price for a CBOT or NYSE seat and what this price represents. Second, explain why the seat values have changed so much in recent months.
Four combinations of outputs of corn and rice : Calculate the four combinations of outputs of corn and rice for these 4 plans.

Reviews

Write a Review

Business Economics Questions & Answers

  Evaluate the factors which managers must consider

To one side maximizing profits evaluate the factors which managers must consider when making judgment to outsource or integrate forwards/backwards considering which factor would be mainly significant for decision-making.

  Fenway park home of the boston red sox

A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.

  Average variable cost

For each level of output except zero output, calculate the average variable cost, average total cost and average fixed cost.

  Describe a skimming price and a penetration price

Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.

  Affect simple money multiplier

Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Merger that raises the hhi

Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.

  Expansionary monetary policy

Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.

  Balnurs opportunity cost of production

In 2012, Balnur taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2013, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business.

  Capitalized cost of expenditures

What reliance performance would be measured efficient. Elucidate reliance behavior which would be considered excessive.

  Situations forms in competitive markets

he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.

  Reserve requirements of top commercial banks

The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market

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