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sertanlavr [38]
2 years ago
5

If the stock of money is $250 billion, velocity is 5, and the price level is 10, what is real output

Business
1 answer:
Lostsunrise [7]2 years ago
7 0

The real output given the money supply, price level and the velocity of money is $125 billion.

<h3>What is the quantity theory of money?</h3>

The quantity theory of money states that the price of goods and services in an economy is directly proportional to the money supply.

Quantity theory of money: price x real output = money supply x velocity

<h3>What is the real output?</h3>

Real output = (money supply x velocity) / price

(250 billion x 5) / 10 =

$125 billion

To learn more about the quantity theory of money, please check: brainly.com/question/26370040

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Consider the following linear program: Min s.t. 8X + 12Y 1X + 3Y &gt;= 9 2X + 2Y &gt;= 10 6X + 2Y &gt;= 18 A, B &gt;= 0 a. Use t
mihalych1998 [28]

Answer: Graph of (A) (B) and {D) are attached accordingly.

Explanation:

A)

The critical region of the constraints can be seen in the following diagram -

(0,9) (0,5) (0,3) (0,0) (3,0) (5,0) (9,0) The feasible region is shown in white

The intersection points are found by using these equations -

Vertex Lines Through Vertex Value of Objective

(3,2) x+3y = 9; 2x+2y = 10 48

(9,0) x+3y = 9; y = 0 72

(2,3) 2x+2y = 10; 6x+2y = 18 52

(0,9) 6x+2y = 18; x = 0 108

So, we can see the minimum value of the objective function occurs at point (3,2) and the minimum value of the objective function is = 48.

------------------------------------------------------------------------------------------------------------------------------------------------------------------

B)

When we change the coefficients of the variables in the objective function, the optimal solution may or may not change as the weights (coefficient) are different for each constraints for both the variabls. So, it all depends on the coefficient of the variables in the constraints.

In this case, the optimal solution does not change on changing the coefficient of X from 8 to 6 in the objective function.

The critical region would remain same (as shown below) as it is defined by the constraints and not the objective function.

(0,9) (0,5) (0,3) (0,0) (3,0) (5,0) (9,0) The feasible region is shown in white

However, the optimal value of the objective function would change as shown below-

Vertex Lines Through Vertex Value of Objective

(3,2) x+3y = 9; 2x+2y = 10 42

(9,0) x+3y = 9; y = 0 54

(2,3) 2x+2y = 10; 6x+2y = 18 48

(0,9) 6x+2y = 18; x = 0 108

So, we can see that the minimum value now has become 42 (which had to change obviously).

-------------------------------------------------------------------------------------------------------------------------------------------------------

C)

Now, when we change the coefficient of the variable Y from 12 to 6, again the critical region would remain same as earlier. But in this case, the optimal solution changes as shown below -

Vertex Lines Through Vertex Value of Objective

(3,2) x+3y = 9; 2x+2y = 10 36

(9,0) x+3y = 9; y = 0 72

(2,3) 2x+2y = 10; 6x+2y = 18 34

(0,9) 6x+2y = 18; x = 0 54

We can see that the minimum value now occurs at (2,3) which is 34, so both the optimal solution and optimal value have changed in this case.

----------------------------------------------------------------------------------------------------------------------------------------------------------

D)

When we limit the range of the variables as -

4 \leq X \leq 8 \:\: and\:\: 12\leq Y \leq 24,

the critical region now becomes -

So, the new critical points are (4,12), (4,24), (8,24) and (8,12).

So, the values of the objective function at these points can be calculated as -

Vertex Value of Objective

(4,12) 8*4+12*12 = 176

(4,24) 8*4+12*24 = 320

(8,24) 8*8+12*24 = 352

(8,12) 8*8+12*12 = 208

So, the new optimal solution is (4,12) and the optimal value is 176.

if we knew the range of the variables in the part B and C earlier, we could have just said that the optimal solution will not change as the value would have been no longer depended on the coefficients of variables in the constraints.

7 0
3 years ago
1.Which of the following occurs when wages increase? a. The number of workers employed by the government increases b. The quanti
Oliga [24]

1.c. The quantity of labor supplied decrease.

2.d. Businesses demand labor in the labor market.

3.b. Inverse.

4.a. A decrease in the number of qualified car mechanics.

5.d. Decrease the wages of carpenters.

6.a. Higher wages for workers.

7.a. Marginal revenue product.

Explanation:

1. The demand for labour will decrease because

  • Increasing wages increases the cost value of businesses which produces the products, and leading to hike in their selling prices, due to which consumers will buy now lesser.
  • A increase in the wages can also make labour even more expensive relative to the capital so businesses can substitute capital for labour.

This means that less labour will be used.

2. The labor market is defined as the job market in which employees such as workers provide the supply to the market and employers like businesses provide the demand to the market.

3. As the wages increases,number of workers decreases and vice versa thus showing an inverse relationship between them.

4. A decrease in the number of qualified car mechanics will eventually increase the demand for them and hence it will lead to increasing wages of car mechanics.

5. A decreasing demand for carpenters would lessen the need of carpenters, leading to decrease the wages of carpenters.

6. Education and training might lower the wages of workers since the need and demand of workers get decreased.

7. The change in total profits to the change in the no. of inputs provided is defined as Marginal Revenue Product also known as MRP.Theoretically, it is the additional revenue generated during hiring an additional worker which is equivalent to usage of one more units of the input .

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3 years ago
Multiple Choice Question The changes in the non-cash balance sheet accounts explain the differences between the ______. Multiple
Blizzard [7]

Answer: income statement and the statement of cash flows

Explanation:

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What is 8766656 + 76678997(56)-677{56} =xy+4
ss7ja [257]

Answer:

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Explanation:

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An increase in the government's budget surplus will cause the interest rate to: either increase or decrease. remain the same. in
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