Explain annual catch exceed maximum sustainable fish catch

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Reference no: EM1371570

Q. Suppose that quantity of money in circulation is fixed but income velocity of money doubles. If real GDP remains at its long-run potential, illustrate what happens (exactly) to equilibrium price level?

Q. If average income increases from US$5,000 to US$5,500 and if technological advances reduce cost of catching fish from US$2,500 per ton to US$2,000 per ton, by Explain how much will annual catch exceed maximum sustainable fish catch of 30 million tons of fish?

Reference no: EM1371570

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