User Account

All Pages

Velocity of money remains constant

Assignment Help Macroeconomics
Reference no: EM132551034

Suppose the money supply is 100, the velocity of money is 3, the price level is 5 and real GDP is 60. An unanticipated increase in the money supply to 200 increases GDP to 100 in the short run, but then real GDP returns to 60 on the long run. Assuming the velocity of money remains constant, what will happen to prices in the short run? In the long run?

Reference no: EM132551034

Questions Cloud

Find the direct labor time variance is : What The direct labor time variance is?Actual pounds purchased and used in production 11,800.Standard pounds per completed unit 12
Personal narrative-professional life : Please share a time in your professional life where you observed an unethical situation. What were your thoughts and opinions on this ethical issue?
What kinds of jobs are needed in an organization : What kinds of jobs are needed in an organization? How has specialization of labor, or division of labor, been implemented in an organization in which you have.
Combined with increased taxes : Increased government borrowing, combined with increased taxes, might do the trick. How is it possible that in the face of rising expenditures
Velocity of money remains constant : Assuming the velocity of money remains constant, what will happen to prices in the short run? In the long run?
What role should ethics play with strategic planning : What are the types of plans? How are they distinguished from one another? Do you think plans with incremental objectives are more effective than those.
Why would the inflation rate be high in the long-run : Why would the inflation rate be high in the long-run if the central bank cannot commit itself to the originally announced policy?
Types of e-payment system to e-commerce business : Discuss the benefits of the multiple types of e-payment system to the e-commerce business?
What is the present value of a cash flow : What is the present value of a cash flow if 16,000 yuan will be received in 2 years and the discount rate (interest rate) is 10%

Reviews

Write a Review

Macroeconomics Questions & Answers

  Elucidate how the enterprise zones could be utilized

Elucidate how the enterprise zones could be utilized to enhance the economic development implications of your policy issue.

  Explain how might we interpret this statement

Explain how might we interpret this statement in terms of cost curves and revenue curves.

  As we know about the own-price elasticity

As we know about the own-price elasticity for good x.

  1 under what conditions does a nominal tariff applied to an

1. under what conditions does a nominal tariff applied to an import product overstate or understate the actual or

  Purpose for rising average variable cost

Describe why the following statement is true: It is possible for average variable cost (AVC) to rise while average total cost (ATC) declines.

  Changes in another economic variable

What is the measure of how much one economic variable responds to changes in another economic variable.

  How about linking eastern denmark more directly with germany

how about linking eastern Denmark more directly with Germany's Baltic Sea coastline, enabling Danes to go by train from capital to Berlin in, say, three hours?

  Describe why is some degree of monopoly power permitted

Describe Why is some degree of monopoly power permitted? What you read, do you think Google is harmful monopoly that should be subject to USanti-trust action.

  How is it similar as well as different from socialism

What is Marxism? How is it similar as well as different from Socialism? Illustrate and explain the effects of Marxism worldwide in both the past and present.

  What we probably see is significant increase in construction

What we probably won't see is a significant increase in construction. The market still has plenty of existing inventory to work through before more homes are needed.

  Inflationary gap or a recessionary gap

Is the Canada experiencing an inflationary gap or a recessionary gap? Consider the situation before Covid - 19.

  What is likely to happen to the unemployment rate

The country has an inflation target of 3% and the central bank decides to bring inflation down to meet the target. What is likely to happen to the unemployment

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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