Long-run macroeconomic equilibrium

Assignment Help Business Economics

Reference no: EM13832904

Consider a hypothetical economy that produces at its long-run macroeconomic equilibrium at a price level of 100.

Suppose the real GDP of this economy grows at an annual rate of 5%. Assume that the central bank would like to keep the inflation rate at 2% per year. If the velocity of money remains constant, the central bank can achieve its goal by pursing an annual money growth rate of?

Reference no: EM13832904

Questions Cloud

Measuring the value of the nations output : The expenditure approach (the sum of all spendings) to measuring the value of the nation's output (GDP) is equivalent to the income approach (the sum of all payments to factors). Discuss and illustrate with examples(s) where necessary. Real GDP is th..

Discuss its relevance pros and cons : Do you think email marketing should integrated into a social media marketing plan? Why? Discuss its relevance, pros, and cons. This assignment only has to be a page long

What you have accomplished to your professional goal : Reflect on what you have accomplished relative to your professional goal during our course experience.

Provide overview of your marketing mediums you have consider : Identify, analyse and incorporate relevant marketing information and legal ethical and sustainability issues and include these in your marketing plan and activities. Provide an overview of your target markets and marketing mediums you have consider..

Long-run macroeconomic equilibrium : Consider a hypothetical economy that produces at its long-run macroeconomic equilibrium at a price level of 100.

Assume economy without government and without trade : Suppose the consumption behavior in problem 1 changes so that C=100+0.9Y, while I remains at 50. Assume an economy without government and without trade. Suppose the Consumption function is given by C=100+0.8Y , whereas I=50.

What safety rule did andrew break : what safety rule(s) did Andrew break

Regulate business with respect to privacy on-line : Many believe that the government should regulate business with respect to privacy on-line, but corporations believe that self-regulation is more effective. Which approach benefits consumers? Businesses?

What were texts victor mentions about as they relate : What were the texts Victor mentions about as they relate to Victor's path

User Account

All Pages