Define direct relationship with both price level nd real gdp

Reference no: EM13187012

In the money market, money supply is determined by the central bank, such as the Fed in the U.S. Because of this, money supply curve is usually vertical in the short run, while the money demand curve is downward sloping. The quantity demanded of money has an inverse relationship with the interest rate, but a direct relationship with both the price level and real GDP. Therefore, when the general price level increases, what will most likely happen?

Reference no: EM13187012

Questions Cloud

The gallup poll asked a sample of 1785 u.s. adults : The Gallup Poll asked a sample of 1785 U.S. adults, "Did you, yourself, happen to attend church or synagogue in the last 7 days?" Of the respondents, 750 said "Yes." Suppose that Gallup's sample was an SRS.

Job description for a criminal intelligence : Analyst job descriptions are important in attracting the best candidate for the position. The job description for a Criminal Intelligence

Define short-run aggregate supply curve : The short-run aggregate supply curve (SRAS) can be written as follows: Y = Yf b (p - pe), where Y = real GDP, Yf = full-employment real GDP, p = price level, pe = expected price level, and b is a positive coefficient. The SRAS can be re-written as..

Explain the expenditure approach : Assume that Y = real GDP. Then from the expenditure approach, Y = C I G NX. On p. 306 Exhibit 14.10 of the textbook, all C, I, G, and NX are the non-price determinants of AD. Suppose we use C, I, G, and NX as indicators during business cycles, the..

Define direct relationship with both price level nd real gdp : In the money market, money supply is determined by the central bank, such as the Fed in the U.S. Because of this, money supply curve is usually vertical in the short run, while the money demand curve is downward sloping. The quantity demanded of m..

How the prices of some imports increase : For the U.S. perspective, imports are the goods produced by foreigners, imported to the U.S., and consumed by Americans. Exports are the goods produced by Americans, exported to other countries, and consumed by foreigners. U.S. GDP does not includ..

Determine who will get the goods and services : What motivated the producers of all the individual products in the store to make them and offer them for sale How did the producers decide on the best combinations of resources to use Who made those resources available, and why How does the market..

What was the percentage of gross fiscal deficit in 2010 : The Economic Survey estimated the Forex reserves of India at over 297 billion US dollars. The surge in Forex is attributed to growth in which of the following sector Gross Fiscal Deficit stands at 4.8% of GDP. What was the percentage of Gross Fisc..

Implement next benchmarking metrics : Implement next benchmarking metrics and applying it to a process to help drive improvement.

User Account

All Pages