What is the level of nominal gdp in year 1

Assignment Help Econometrics
Reference no: EM13192560

Year 1: money supply= $400 billion
Long-term growth of potential GDP= 3%
Velocity= 4 and constant
No excess reserves
Reserve requirement is 10%
Economy is operating at full-employment real output
A) What is the level of nominal GDP in year 1?
B) The Fed adheres to a monetary rule through open market operations. What amount of US securities will it have to sell to, or buy from, banks or the public between years 1 and 2 to meet its monetary rule?

Reference no: EM13192560

Questions Cloud

What is the equadric formula : what is the equadric formula for $1000.00 worth of stock with a 10% annual interest increase?
What samples should be taken : A pollster wants to determine the difference between the proportions of high-income voters and low-income voters who support a decrease in the capital gains tax. If the answer must be known to within 0.2 at the 95% confidence level and the sample ..
Define what is the reaction quotient q : The following reaction was carried out in a 2.50L reaction vessel at 1100 K: C(s)+H2O(g)?CO(g)+H2(g) If during the course of the reaction, the vessel is found to contain 5.25mol of C
Consider a 30-cm-diameter spherical watermelon : Consider a 30-cm-diameter spherical watermelon that is cut into two equal parts and put into a freezer at -12oC. Initially the entire watermelon is at a uniform temperature of 25oC and the heat transfer coefficient on the surface is 30 W/m2oC.
What is the level of nominal gdp in year 1 : A) What is the level of nominal GDP in year 1 B) The Fed adheres to a monetary rule through open market operations. What amount of US securities will it have to sell to, or buy from, banks or the public between years 1 and 2 to meet its monetary r..
According to the text companies that do not innovate : According to the text, companies that do not innovate _____
Define solution containing the thiourea complex of bismuth : A solution containing the thiourea complex of bismuth (III) has a molar absorptivity of 9.32*10^3 l/mol*cm at a wavelength of 470 nm
Southern states adopted the northern system : Southern states adopted the northern system of
Explain the reaction of hydrochloric acid : write out the balanced net ionic equation for the reaction of hydrochloric acid

Reviews

Write a Review

Econometrics Questions & Answers

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  Explain who has the same preferences as jim

Jim's utility function is U(x, y) = xy. Jerry's utility function is U(x, y) = 1,000xy + 2,000. Tammy's utility function is U(x, y) = xy(1 - xy). Oral's utility function is U(x,y)= -1/(10+2xy).Marjoe's utility function is U(x, y) = x(y + 1,000). Pa..

  Determine what is minimum salvage value

A new chemical remediation tank is needed. Current technology tanks, which costs $150,000, MUST BE DRAINED AND TREATED EVERY TWO YEARS AT A COST OF $30,000; THE TANKS WILL LAST TEN YEARS, AND EACH WILL HAVE A SALVAGE VALUE OF 5%. OF FIRST COST.

  What promised payment will savers require

a safe firm and a risky firm. Each firm needs to borrow the same amount of funds to start a project. The safe firm knows with certainty that it will see a 30 percent return on the project (i.e., for each $100 borrowed, the safe firm will see rev..

  What is the efficient scale and minimum average cost

What is the cost function, marginal cost function, and average cost function for each plant? b) What is the efficient scale and minimum average cost for each plant? c) What is the cost function for the firm?

  Explain why sharp rise in oil prices might not necessary

Since Fall of 2011, the price of oil has shown a sharp increase again as continuation steady rise in oil price attributed to the Arab Spring (the political uprising in the Middle Eastern and North African countries) started in the beginning of 201..

  Compute a consumer price index for apples for each year

Abby consumes only apples. In year 1, red apples cost 1$ each, green apples 2$ each, and Abby buys ten red apples. In year 2, red apples cost $2, green apples cost $1, and Abby buys 10 green apples.

  Identifying the unemployment rate

Recognize the unemployment rate as an economic indicator for whirlpool, and describe why this indicator would be a good choice.

  Difference btwn human capital and signal theory of education

1. Job A pays $30,000 a year. Job B is completely identical in all aspects except it is located in an area that has a 10% higher cost of living. In order to compete, Job B would need to pay. This is known as a. 2. Explain the difference ..

  What would the annual interest be

To fund its wars against Napoleon, the British government sold console bonds. There were referred to as "perpetuities" because they would pay 3 every year in perpetuity (forever). If a citizen could purchase a console for 25, what would its annual..

  How much utility will the marginal dollar yield

Let MUa=Z=10-x and MUb=Z=21=2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B- that is, x=y=10. How is the..

  Solve these equations for the equilibrium values of c

Assume that the following equations characterize a large open economy: (1) Y = 5,000 (2) Y = C + I + G + NX (3) C = 1/2(Y - T) (4) I = 2,000 - 100r (5) NX = 500 - 500e (6) CF = -100r (7) CF = NX (8) G = 1,500 (9) T = 1,000where NX is net exports, CF ..

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