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Suppose velocity of money is constant, the growth rate of real GDP is 3% per year, and the growth rate of money is 5% per year. Consider this a \baseline." In each case show (don't just state) what's happening. I.e., show your work. (a) What is the rate of inflation in this baseline case? (b) What happens if the growth rate of money rises to 10% per year? (c) What happens if the growth rate of money rises to 100% per year? (d) Return to the baseline case; what would happen if real GDP growth were to rise to 5% per year? (e) What would happen if real GDP growth fell to 2% per year? (f) Again go back to the baseline case; what happens to inflation if money velocity rises at 1% per year. What might cause money velocity to change like this?
Why might even a well-maintained, profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development.
Suppose a nation picks 1000 young adults at random to serve in the army. Illustrate what information do you need to determine the cost of using these people in the Army.
It is assumed that quantity of item is intended of other items find out probability that first faulty item doesnot occur in the first six selected items.
Elucidate how much income did this represent for each of the 300 million U.S. citizens. Illustrate what was the largest GDP decline in a postwar U.S. recession.
Review the biographies of each of the seven members of the Board of Governors.
From an economic perspective, reprocessing is a money loosing proposition since we derive negative profits from it.
Does overvaluation (undervaluation) of As currency reflect a major capital inflow (outflow) into country. What can you find with respect to financial account of balance of payments to substantiate that interpretation.
compare and contrast the political and economic differences of at least two countries (for example India and the United States); and 4) discuss what managers can do to successful work with the opportunities and challenges present in this global ..
illustrate what is the real GDP in every yr, given which the price index has risen from 100 to 104.5 in the 1st yr also up to 108.3 in the 2nd yr.
Among which of the following could not bar entry into an industry. Firms prevent collusion among firms regulate natural monopolies correct the outcomes of positive and negative externalities in private markets.
Suppose that the supply curve of healthcare services is perfectly inelastic. Analyze the impact of an increase in consumer.
A Post Office is set up in the Constitution but no Central Bank was. Why didn't the founders of the US who wrote the Constitution include a bank? How did this omission hamper US economic growth and, more importantly, US economic stability?
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