Question

4. Velocity and the quantity equation Consider a simple economy that produces only pies. The following table contains informa

The money supply grew at a rate of (1%, 0.5%, 0.63%, 101%?) from 2017 to 2018. Since pie output did not change from 2017 to 2018 and the velocity of money (Increased, decreased, remained the same?), the change in the money supply was reflected (partially or entirely?) in changes in the price level. The inflation rate from 2017 to 2018 was (0.5%, 101%, 1%, 0.63%?).

0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1
Year Quantity of money Velocity of money Price level Quantity of output Nominal GDP
2017 400 10 5 800 4000
2018 404 10 5.05 800 4040

Blanks-

1) (404-400)/400*100 = 1%

2) remained the same

3) entirely

4) 1%

Add a comment
Know the answer?
Add Answer to:
The money supply grew at a rate of (1%, 0.5%, 0.63%, 101%?) from 2017 to 2018....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • 4. Velocity and the quantity equation Consider a simple economy that produces only pies. The following...

    4. Velocity and the quantity equation Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2017, the money supply was $200, the price of a pie was $5.00, and the economy produced 400 pies. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Price Quantity of Money Velocity of Level...

  • Consider a simple economy that produces only pies. The following table contains information on the economy's...

    Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2018, the money supply was $200, the price of a pie was $5.00, and the economy produced 400 pies. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money (Dollars) 200 Price Level (Dollars) Year Nominal GDP (Dollars) Quantity of Output...

  • 4. Velocity and the quantity equation 4. Velocity and the quantity equation Consider a s...

    4. Velocity and the quantity equation 4. Velocity and the quantity equation Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $280, the price of a pie was $7.00, and the economy produced 600 pies. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money...

  • Consider a simple economy that produces only pies. The following table contains information on the economy's...

    Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2015, the money supply was 100, the price of a pie was $4.00, and the economy produced 500 pies Fill in the missing values in the following table, rounding to the nearest cent when necessary Money Supply (Dollars) 100 103 Price Level (Dollars) 4.00 Quantity of Output (Pies) 500 500 Nominal GDP...

  • 4. Velocity and the quantity equation Consider a simple economy that produces only pies. The following table contains i...

    4. Velocity and the quantity equation Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2015, the money supply was $320, the price of a pie was $8.00, and the economy produced 600 pies. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Output (Pies) Nominal GDP (Dollars) Year Price Level (Dollars) 8.00...

  • Attempts Keep the Highest: /2 5. Velocity and the equation of exchange Consider a simple economy...

    Attempts Keep the Highest: /2 5. Velocity and the equation of exchange Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2015, the money supply was 100, the price of a pie was $8.00, and the economy produced 250 pies Fill in the missing values in the following table, rounding to the nearest cent when necessary. Money Supply (Dollars) 100 101...

  • 4. Velocity and the quantity equation Consider a simple economy that produces only pens. The following...

    4. Velocity and the quantity equation Consider a simple economy that produces only pens. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $360, the price of a pen was $4.50, and the economy produced 800 pens. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money (Dollars) Price Level (Dollars) Quantity of...

  • 4. Velocity and the quantity equation Consider a simple economy that produces only pens. The following...

    4. Velocity and the quantity equation Consider a simple economy that produces only pens. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money (Dollars) Price Level (Dollars) Quantity of...

  • bld-6873088unbNodeld-2569997508deploymentld-567221146989404713414479848elsEN-978133709654 Homework (Ch 30) Due on Mar 26 at 11 59 PM COT Back to Assigme...

    bld-6873088unbNodeld-2569997508deploymentld-567221146989404713414479848elsEN-978133709654 Homework (Ch 30) Due on Mar 26 at 11 59 PM COT Back to Assigme Attempts: Average: 12 4. Velocity and the quantity equation Consider a simple economy that prodaces only pens. The following table contains information on the economy's money supply, velocity of money price level, and output. For example, in 2014, the money supply was $400, the price of a pen was $5.00, and the economy produced 800 pens. Fia in the missing values in the folowing...

  • 4. Velocity and the quantity equation Consider a simple economy that produces only cell phones. The...

    4. Velocity and the quantity equation Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2018, the money supply was $200, the price of a cell phone was $7.50, and the economy produced 400 cell phones. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Year Quantity of Money (Dollars) 200...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT