Assume that M is $300 billion and V is 10. What is the level of nominal GDP according to the monetarist equation? If V rises by 10%, then according to the monetarist equation, what will be the new level of nominal GDP?
What will be an ideal response?
10 ? $300 billion = $3000 billion GDP. If V rises by 10% to 11%, then the new level of GDP should rise by 10% to $3300 billion or 11 ? $300 billion = $3300 billion.
You might also like to view...
Refer to Figure 18.2. The opportunity cost of producing fishing poles in Macadamia is
A) 3/4 of a spear. B) 5/6 of a spear. C) 6/5 spears. D) 4/3 spears.
When an economy faces diminishing returns
A) the slope of the per-worker production function becomes steeper as capital per hour worked increases. B) the per-worker production function shifts to the left. C) the slope of the per-worker production function becomes flatter as capital per hour worked increases. D) the per-worker production function shifts to the right.
Which of the following students would be most likely to drop out of college before completing their degree?
a. a senior physics major with a solid B average b. a junior secondary education major who has just read about the substantial improvement in the job opportunities available for teachers with a college degree c. an outstanding baseball player in his junior year that just received a $500,000 offer from a professional team d. a junior economics major who wants to attend law school
According to the law of demand:
A. Price and quantity demanded are inversely related. B. Price is constant along a particular demand curve. C. The demand curve will shift rightward as price increases. D. Businesses will produce more as price increases.