If velocity ?and aggregate output ?remain constant

Assignment Help Business Economics

Reference no: EM13859560

If velocity ?(V) and aggregate output ?(Y) remain constant at $4 and $1,000 billion?, ?respectively, what happens to the price level ?(P) if the money supply? (M) declines from $425 billion to $350 billion?? Originally, what is the price level?

?(Round your response to two decimal? places)

After the money supply? decreases, what is the price level?

?(Round your response to two decimal places?.)

Reference no: EM13859560

Questions Cloud

Develop a thesis pertaining to the assigned film text : Develop a thesis pertaining to the assigned film text and whether or not it, the film, in your view has the power to transform one's political sensibilities

How the issue affects you at a personal level : Describe how the issue affects you at a personal level and how you might handle the issue from a managerial perspective. Limit writing in first person

Velocity remains constant and the money supply increases : Velocity remains constant at 8 and the money supply increases from $200 billion to $300 billion. If real GDP increased by 10?%, then the price level increased by __ ?%?

If the growth rate of the money supply : If the growth rate of the money supply is 6?%, velocity is? constant and real GDP grows at 4?% per year on? average, then the inflation rate will be what %? If the growth rate of the money supply increases to 18?%, velocity is constant and real GDP g..

If velocity ?and aggregate output ?remain constant : If velocity ?(V) and aggregate output ?(Y) remain constant at $4 and $1,000 billion?, ?respectively, what happens to the price level ?(P) if the money supply? (M) declines from $425 billion to $350 billion?? Originally, what is the price level?

Complete contracting eliminates flexibility : Contracting may not be preferable to vertical integration because of which of the following conditions: Complete contracting eliminates flexibility. Incomplete contracting may result in large transactions costs that dissipate profits. The creation of..

Upstream relates to downstream : Use the market relates to vertically integrate as: "Upstream" relates to "downstream". "Transaction costs" relates to "agency" and "influence costs". c. "Buy" relates to "make".

Energy used by traditional incandescent bulbs : LED light bulbs use only 20 to 25 percent of the energy used by traditional incandescent bulbs. Even if all consumers replace their old bulbs by the LED bulbs, do we expect that the arrival of LED light bulbs will decrease energy consumption for ligh..

Demand with perfect substitutes-utility function : Problem associated with fourth video: demand with perfect substitutes Consider the following utility function u(x1, x2) = 2x1 + x2. Calculate the MRS for this utility function. Does it depend on x1 and x2. (b) Given an income m and prices p1 and p2 d..

User Account

All Pages