Determinants of potential gdp

Assignment Help Macroeconomics
Reference no: EM132482880

Suppose that in the long run, the money supply increases but determinants of potential GDP (labour , capital , and technology ) do not change. In this situation can monetary policy alone cause long-run economic growth? If not, what does it result in instead?

Reference no: EM132482880

Questions Cloud

List the three reasons that the bank of canada : List the three reasons that the Bank of Canada does not target the money supply.
Four-firm concentration ratio for industry : Its own market share is 35 percent, which ties it with the other largest producer and seller in the industry. The other three firms each have a 10 percent marke
What is the dollar return on investment : The company paid a dividend of $4.08 per share during the year, and had an ending share price of $55.29. What is the dollar return on your investment?
Compute the company gross profit margin : Sales Returns and Allowances $325,000; Sales Discounts $75,000; and Cost of Goods Sold $1,850,000. Compute the company's gross profit margin
Determinants of potential gdp : Suppose that in the long run, the money supply increases but determinants of potential GDP (labour , capital , and technology ) do not change.
What change in strategy you would recommend for WV? : Which growth strategy WV is following and In these times of trouble (when Coronavirus is taking the whole world in its grip), what change in strategy you would
Consumption and saving in the simple keynesian model : How a self-regulating economy moves out of a recessionary gap? What are the link between consumption and saving in the simple Keynesian model?
What is Grumbles residual income : Bumble's required rate of return on capital is 11 percent. Grumble has a 25% sales margin, 20% ROI, and income of $200,000. What is Grumble's residual income
Concept of surplus with respect to the quantity : Minimum wage is a price floor, so discuss an increase in the minimum wage from a supply and demand standpoint, making sure to address the concept of surplus

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!

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