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Using the quantity theory of money, suppose that this year's money supply is $50 billion, nominal GDP is $1 trillion, and the real GDP is $500 billion.
a. What is the price level? What is the velocity of money?
b. Suppose that velocity is constant and the economy's output of goods and services rises by 5 percent each year. What will happen to nominal GDP and the price level next year if the bank of Canada keeps the money supply constant?
c. What money supply should the Bank of Canada set next year if it wants to keep the price level stable?
d. What money supply should the Bank of Canada set next year if it wants inflation of 10 percent?
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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Prepare a major handout on the key principles of instructional leadership
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