Calculate the growth rate of nominal gdp

Assignment Help Econometrics
Reference no: EM13203667

If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the inflation rate, the growth rate of money, and the growth rate of nominal GDP.

Reference no: EM13203667

Questions Cloud

Find the dimensions of the pen : a rectangular pig pen is built against an existing brick fence. 24m of fencing was used to enclose 70m^2. find the dimensions of the pen.
Explain solving a system of equations : Which method do you prefer when solving a system of equations? Why? What circumstances would cause you to use a different method?
Find the speed of the plane in still air : A pilot can fly an MD-11 2160 miles with the wind in the same time as she can fly 1920 miles against the wind. If the same speed of the wind is 30 mph, find the speed of the plane in still air.
What were region a sales in the second quarter : in the second quarter sales increased by 15% for region B and region A had 1.5 times as many sales as region B. what were region A's sales in the second quarter?
Calculate the growth rate of nominal gdp : If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the inflation rate, the growth rate of money, and the gro..
How much money did spiderman invest in each account : Spiderman invests 23000 dollars into 2 accounts. One earns 8.4% annual interest and the other account earns 5.1% annual interest. At the end of one year, Spiderman has earned 1750.50 dollars from interest on these 2 accounts. How much money did Sp..
Major methods for determining the cost of equity : What are the two major methods for determining the cost of equity? If dividends do not grow by a fixed percentage and we do not know he firm's beta, can we still determine the equity cost? What would be necessary?
Explain situation beginning with an empty tank : Suppose the tank is empty. Both inlet pipes are running at full force. The drain pipe is open. When the tank is half full, the drain pipe is closed.
What effect will the pay have on cigrattes optimal price : The U.S. Cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under proposed settlement, cigarette companies will make fixed annual payments to government based on their historical market s..

Reviews

Write a Review

Econometrics Questions & Answers

  Why is the effect on equilibrium output finite

Explain the multiplier intuitively. Why is it that an increase in planned investment of $100 raises equilibrium output by more than $100 Why is the effect on equilibrium output finite How do we know that the multiplier is 1/MPS

  What is the producer surplus for an individual firm

Calculate the equilibrium price and quantitiy in the chocolate market. How much does a firm of each type produce Calculate the consumer and producer surplus What is the producer surplus for an individual firm of each type

  What is total number of workers that will be added to city a

Newton exports all their products outside the city and Garfield only sells their products within the city. Newton experiences growth, so it hires 100 more workers, all of whom come to reside in city A.

  What range of payments will the farmer accept

What are the highest and lowest payments from the writer that the bookkeeper farmer team will accept for the 6th day Assume that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept

  What is the difference in the profit-maximizing price

Why is advertising prevalent in many oligopolies, especially when industry demand is inelastic Illustrate your answer by assuming that with advertising, a firm's demand curve has price elasticity of -1.5 and without advertising, it is -2. If MC is..

  Determine the one machine that should be selected

Engineering Economics 6th edition, Mountain Pass Canning Company has determined that any one of four machines can be used in one phase of its canning operation. The costs of the machines are estimated below, and all machines have a 10-year life.

  What will happen to price of advertisement

A monopolist has two types of customers. There are 100 of Type A, who will each pay up to $10 for a single unit of the good, and 50 of Type B, who will each pay up to either $8. Neither is willing to purchase additional units at any price. If it m..

  By how much should expect chocolate syrup sales to increase

A grocery store notices that the cross-price elasticity between ice cream and chocolate syrup is -.3. The store is advertising a sale with ice cream prices reduced by 20%. By how much should they expect chocolate syrup sales to increase

  What wage would the firm pay if the candidate was found

The firm prefers to have type M in job D type U in job E. In the best outside option, the candidate is paid $80,000 a year. The monetary value of disutility in the job D is $15,000 for type M and $30,000 for type U.

  Determine the probability of winning

Tennessee just instituted a state lottery. The initial jackpot is $100,000. If the first week yields no winners, the next week's jackpot goes up, depending on the numbers of previous players who placed the lottery bets

  Compute the annual income you will receive during retirement

Assume that savings are invested at the end of each calendar year. Assume that during your working life you earn a return of 8% per year, and that when you retire at age 65 you move your assets into more conservative investments and earn a return ..

  Why did one measure increase while other measure decrease

Real GDP was $4,179 billion in year 1 and $4,848 billion in year 2. IN contrast, real GDP per capita in Year 1 was $19,261, but in year two it was only $19,162. Why did one measure increase while the other measure decreased

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