Homework Answers
a) Remain unchanged.
Reason- In the medium run, unemployment rate is equal to natural rate of unemployment. The natural rate of unemployment is constant due to inflation being ewual to expected inflation in the medium run. If the unemployment rate is not constant, it violates the condition required for the economy to be in the medium run.
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Question 79 1.25 pts "In the medium run, a reduction in nominal money growth from 9%...
TD Al Hassan All Ahmed ( 41 11 42 11 43 11 44 11 45 Moodle...
TD Al Hassan All Ahmed ( 41 11 42 11 43 11 44 11 45 Moodle Ob. Decrease increase. 46 47 Finish attempt- Assuming expected inflation is zero, real output to (Note this question refers to the results from an increase in the money supply in the short run situation using the AD/AS Models) in the short run, an increase in the nominal money supply will cause Time left 1:08:50 Answer saved Points out of 1.50 P Flag Select one:...
4. If nominal money demand doubles and the real money supply also does what happens to...
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
5-7 QUESTION 5 I nominal GDP grew 9 percent last year and the population have not...
5-7
QUESTION 5 I nominal GDP grew 9 percent last year and the population have not changed and inflation rate was 4 percent, then real GDP per capita grew by percent. 2.25 13 QUESTION 6 -20 + 4/w), where w is the wage per Suppose a firm's labor demand equation is L-28-21w), and the labor supply equation that it froos is, hour worked. The government imposes a minimum wage equal to 10. As a result unemployment will not change increase...
Question 5 1 pts Velocity is high during: O times of decreases in the money supply....
Question 5 1 pts Velocity is high during: O times of decreases in the money supply. times of increased government spending. O times of very high rates of inflation (hyperinflation). O All of the listed answers are correct. Question 6 1 pts If a business owner converts a small certificate of deposit to its Money Market Mutual Fund, then: we cannot predict the impact on M2, but M1 definitely drops. O M1 and M2 will stay the same. O M1...
Question 3 This question considers long-run policies in Mexico relative to Canada. Assume Mexico's money growth...
Question 3 This question considers long-run policies in Mexico relative to Canada. Assume Mexico's money growth rate is currently 4% and its inflation rate is 2%. Canada's money growth rate is 6% with 3.25% inflation rate. The world real interest rate is 0.75%. For the following questions, use the conditions associated with the general monetary model. Treat Mexico as the home country and define the exchange rate as Mexican pesos per Canadian dollar, E/cS. a. Calculate the growth rate of...
- Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against...
- Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than the...
Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the...
Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate (on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than the demand...
All Hassan Al Ahm SNC Moodle d. the nominal interest rate During the Christmas shopping season,...
All Hassan Al Ahm SNC Moodle d. the nominal interest rate During the Christmas shopping season, the demand for money increases significantly. If the Fed takes no actions to offset the increase in money demand, then nominal interest rates will Finish attempt. 18 Time left 1:06:54 Not yet andnered Points out of Select one: Oa. decrease F Rag b, remain constant c, equal the real interest rates O d. increase Gueston 19 Not yet anseered Paints out of Prior to...
t t Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted...
t t Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than...
40) Ryan saved $50,000 last year so that he could buy asr.In this case, money served the4) function of a A) measure of inflation C) store of value B) unit of account D) medium of exchange 41) Whi...
40) Ryan saved $50,000 last year so that he could buy asr.In this case, money served the4) function of a A) measure of inflation C) store of value B) unit of account D) medium of exchange 41) Which of the following is likely to be true when an economy is in a boom? 41) A) The size of the govermment expenditure multiplier is relatively small. B) The inflation rate is negative. C) The unemployment rate is high. D) The size...
TD Al Hassan All Ahmed ( 41 11 42 11 43 11 44 11 45 Moodle Ob. Decrease increase. 46 47 Finish attempt- Assuming expected inflation is zero, real output to (Note this question refers to the results from an increase in the money supply in the short run situation using the AD/AS Models) in the short run, an increase in the nominal money supply will cause Time left 1:08:50 Answer saved Points out of 1.50 P Flag Select one:...
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
5-7
QUESTION 5 I nominal GDP grew 9 percent last year and the population have not changed and inflation rate was 4 percent, then real GDP per capita grew by percent. 2.25 13 QUESTION 6 -20 + 4/w), where w is the wage per Suppose a firm's labor demand equation is L-28-21w), and the labor supply equation that it froos is, hour worked. The government imposes a minimum wage equal to 10. As a result unemployment will not change increase...
Question 5 1 pts Velocity is high during: O times of decreases in the money supply. times of increased government spending. O times of very high rates of inflation (hyperinflation). O All of the listed answers are correct. Question 6 1 pts If a business owner converts a small certificate of deposit to its Money Market Mutual Fund, then: we cannot predict the impact on M2, but M1 definitely drops. O M1 and M2 will stay the same. O M1...
Question 3 This question considers long-run policies in Mexico relative to Canada. Assume Mexico's money growth rate is currently 4% and its inflation rate is 2%. Canada's money growth rate is 6% with 3.25% inflation rate. The world real interest rate is 0.75%. For the following questions, use the conditions associated with the general monetary model. Treat Mexico as the home country and define the exchange rate as Mexican pesos per Canadian dollar, E/cS. a. Calculate the growth rate of...
- Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than the...
Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate (on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than the demand...
All Hassan Al Ahm SNC Moodle d. the nominal interest rate During the Christmas shopping season, the demand for money increases significantly. If the Fed takes no actions to offset the increase in money demand, then nominal interest rates will Finish attempt. 18 Time left 1:06:54 Not yet andnered Points out of Select one: Oa. decrease F Rag b, remain constant c, equal the real interest rates O d. increase Gueston 19 Not yet anseered Paints out of Prior to...
t t Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than...
40) Ryan saved $50,000 last year so that he could buy asr.In this case, money served the4) function of a A) measure of inflation C) store of value B) unit of account D) medium of exchange 41) Which of the following is likely to be true when an economy is in a boom? 41) A) The size of the govermment expenditure multiplier is relatively small. B) The inflation rate is negative. C) The unemployment rate is high. D) The size...
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