User Account

All Pages

Classical dichotomy and the neutrality of money

Assignment Help Macroeconomics
Reference no: EM132476262

The classical dichotomy and the neutrality of money

The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.

Cho spends all of her money on paperback novels and doughnuts. In 2012 she earned $14.00 per hour, the price of a paperback novel was $7.00, and the price of a doughnut was $2.00.

Which of the following give the nominal value of a variable? Check all that apply.

The price of a doughnut is 0.29 paperback novels in 2012.

The price of a doughnut is $2.00 in 2012.

Cho's wage is $14.00 per hour in 2012.

Which of the following give the real value of a variable? Check all that apply.

The price of a paperback novel is 3.5 doughnuts in 2012.

Cho's wage is 7 doughnuts per hour in 2012.

The price of a paperback novel is $7.00 in 2012.

Suppose that the Bank of Canada sharply increases the money supply between 2012 and 2017. In 2017, Cho's wage has risen to $28.00 per hour. The price of a paperback novel is $14.00 and the price of a doughnut is $4.00.

In 2017, the relative price of a paperback novel is.

Between 2012 and 2017, the nominal value of Cho's wage    and the real value of her wage.

Monetary neutrality is the proposition that a change in the money supply nominal variables and real variables

Reference no: EM132476262

Questions Cloud

Show the situation on the keynesian cross graph : Show the situation on the Keynesian cross graph in the (AE - Y) space and on the aggregate demand and aggregate supply graph in the (P - Y) space
How much did the government spend in providing transfers : This year, country K has a budget deficit of $30 billion, taxes are $70 billion, and government expenditures are $80 billion. How much did the government spend
Government budget deficit : If the government's budget deficit is $20 billion, what would be the trade deficit?
Determine and prepare the journal entry for the issuance : Determine and Prepare the journal entry for the issuance when the market price of the common shares is $168 each and market price of the preferred is $210 each
Classical dichotomy and the neutrality of money : The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.
What is an artificial neural network : What is an artificial neural network and for what types of problems can it be used? Compare artificial and biological neural networks.
Prepare the entries on the books of procter : Prepare the entries on the books of Procter related to the intercompany sale of land for the year ended December 31, 2014, and December 31, 2015.
France opportunity cost of producing a pair of shoes : Suppose that France and Germany both produce beer and shoes. France's opportunity cost of producing a pair of shoes is 4 barrels of beer while Germany
Discuss the visual assets such as charts and annotations : Write a research paper that contains the following: Discuss the visual assets such as charts, interactive controls, and annotations that will occupy space.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd