Fill in the table, and use it to answer the following questions. 2015 2016 Quantity of Money €300 €336 Velocity of Money 20 Price Level €7.50 € Quantity of Output 800 800 In 2015, nominal GDP was € whereas in 2016, nominal GDP was € The money supply grew at a rate of % from 2015 to 2016. Since the velocity of money , the change in the money supply caused nominal GDP to grow by %. Moreover, since apple output did not change from 2015 to 2016, the change in money supply was reflected in changes in the price level. The inflation rate from 2015 to 2016 was %. Which of the following caused the inflation between 2015 and 2016? An increase in the money supply O An increase in real GDP O A decrease in the velocity of money

Fill in the table, and use it to answer the following questions. 2015 2016 Quantity of Money €300 €336 Velocity of Money 20 Price Level €7.50 € Quantity of Output 800 800 In 2015, nominal GDP was € whereas in 2016, nominal GDP was € The money supply grew at a rate of % from 2015 to 2016. Since the velocity of money , the change in the money supply caused nominal GDP to grow by %. Moreover, since apple output did not change from 2015 to 2016, the change in money supply was reflected in changes in the price level. The inflation rate from 2015 to 2016 was %. Which of the following caused the inflation between 2015 and 2016? An increase in the money supply O An increase in real GDP O A decrease in the velocity of money

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The neutrality of money revisited a. Fill in the empty spaces after Year 1 in the chart below: b. What is the growth rate of the nominal money supply between years 1 and 2, 2 and 3, and 3 and 4? c. What is the rate of inflation between years 1 and 2, 2 and 3, and 3 and 4? d. What is the change in the real money supply between years 1 and 2, 2 and 3, and 3 and 4? e. What assumption has been made about real output growth if this data describe the medium run?
First, explain why the money demand curve is downward sloping. Second, explain what factor(s) will cause shifts in the money demand curve. (100 words)
None
16 A change in-----------leads to a change in-----------as well. a) the money supply indirectly; investment b) the interest rate; government purchases c) the money supply; government purchases d) consumption expenditures; the money supply
19
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Figure 369-169 VALUE OF MONEY 5 2 MS. D B MS. A C Money Demand QUANTITY OF MONEY Refer to Figure 369-169. If the money supply is MS₂ and the value of money is 5, then the quantity of money demanded is greater than the quantity supplied; the price level will rise. demanded is greater than the quantity supplied; the price level will fall. supplied is greater than the quantity demanded; the price level will rise. supplied is greater than the quantity demanded; the price level will fall.
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