The country of Freeland has an aggregate demand curve determined by the equationFreeland also has a potential growth rate of 2%.Using this information, draw Freeland's aggregate demand (AD) and long-run aggregate supply (LRAS) curves onthe graph.12LRAS10AD873202 1 012 34 5 6 789 10Real GDP growth rate (%)What is the prevailing inflation rate in Freeland?prevailing inflation rate:

The quantity theory of money:The quantity theory of money equation can be written as follows:

Answered: The country of Freeland has an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please round to 2 decimals places
Suppose that the typical consumer in the USA buys some imported Columbian coffee. An increase in the price of Columblan coffee would show up in an increase in the consumer price index if it is in the basket. would not show up in the Consumer Price Index because it is imported from Columbla. would show up in an increase in the consumer price index even if it is not in the basket. would not show up in the Consumer Price Index because of the high Inflation rates in Columbia would distort the index could never show up in the CPI because of the large seasonal adjustment to the data.
assuming, in a country. the unemployment rate was 15%, And the inflation rate was 17% Ánd the GDP growth rate was 4%. our goal is to make all these 3 factors are equal. which is GDP Growth rate, Inflation rate and unemployment . imagine, that you have a high power in the government, what would you do to make them all equal? 1) would you be able to achieve this goal using only a single policy concept? why or why not? 2) what policy or policy mix would you use to reach that goal? Please explain the policy or the policy mix, explain the policy you would use, and discuss how it would work to achieve the goal.
A futures market trades contracts on the growth rate for nominal GDP. The contract pays $X to the buyer, where X is 100 times the growth rate in nominal GDP from last year to this year. For example, if nominal GDP grows by 1% over last year, the contract pays $100 (1 x 100). Nominal GDP last year was $28,909 billion. Contracts on the futures markets are currently selling for $513. What is the market's prediction for nominal GDP this year? Put your answer in billions. You may round to two decimal places.
When do policy makers justify their fiscal and monetary policy impact to be highly positive and effective on employment growth and income/output growth? Explain under what situation and what process the policy makers feel these to happen. (Hint: The role of labor market among others are responsible in explaining this). Explain.
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Cambodinam had a GDP in 2020 of 300 billion pesos. In 2021 its GDP was 330 billion pesos. The inflation rate in Cambodinam in 2020 was 8%. (CPI was 108) Calculate 1. The Nominal GDP growth rate in 2021. 2. The Real GDP in 2021 expressed in 2020 dollars. 3. The Real GDP growth rate in 2021 23
Activity • Discuss which policies can be implemented in the following situations along with the justifications. • To control the inflation rate • To reduce the income distribution disparities • To increase the investments in construction sector • To encourage the individuals to spend more on consumption • To enhance the government revenue To control imports To reduce unemployment
Inflation and international tradeIdentify which statements are true and which ones are false. For all statements, briefly explain why they are true or false. a) Economists projected inflation rate to be 4% in 2022 in country X. In reality, inflation rate was 7%. Borrowers in country X are better off.b) The government in country X decided to print more money and give transfers of $1,000 to citizens who recently retired. It will cause a decrease in money supply, so the value of money will increase, and prices will decrease.c) Countries X and Y are neighbors. When the government in country X decides to print more money, the value of currency of country Y increases, so this currency appreciates, while the currency of country X depreciates.d) Budget surplus in country X causes a shift of the supply curve for loanable funds to the left, so the real interest rate increases. Then, the net capital outflow decreases, and hence the real exchange rate decreases
The rate of inflation measures the percentage increase in the price of consumer goods. The rate of inflation in the year 2014 was 2% per y in the long run, let's suppose that it persists through 2034. What would be the cost in 2015 of an item that costs $400 in 2014? (Round your answer to the nearest cent.)
Price level (GDP price level, 2005 = 100) 116- Potential GDP 112- AS 108- 104- 100- 96- 92- 88- AD 84- 80+ 530 540 550 560 Real GDP (trillions of 2005 yen) 570 580 >>> Draw only the objects specified in the question. The graph shows the Japanese economy at the beginning of 2010 Draw an aggregate demand curve that is consistent with a falling unemployment rate. Label it AD, Draw an aggregate supply curve that corresponds to the price level falling and the economy still remaining in a recessionary gap Draw a point at the new macroeconomic equilibrium. Click to enlarge graph The economic recovery will occur and deflation will ease if O A. aggregate demand increase faster than aggregate supply increases OB. aggregate supply increases faster than aggregate demand increases OC. aggregate supply decreases with no change in aggregate demand O D. aggregate demand decreases with no change on aggregate supply
Use the following table to calculate nominal and real (inflation-adjusted) growth in Country A's GDP per capita. Based on your calculation, which of the following is true? [Select one answer] Year Nominal per capita GDP CPI (price index) Real per capital GDP Year 1 1000 1 1000 Year 2 1500 1.1 1363.64 There is not enough information to calculate the growth rate The nominal growth is 36.36% The nominal growth is 50% The nominal growth rate is 500%

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