All categories

3 years ago

How might an economist gather empirical data to test the proposed relationship between money and the price level?

2 answers:

6 0

The quantity theory of money says that:
M V = P Y
where M is money supply, V is income velocity of money, P is price level and Y is income level.
Using the analyze of the empirical data, we can say that there is a long-run association between money and price.

Vikentia [17]3 years ago

6 0

An economist gather empirical data to test the proposed relationship between money and the price level by gathering data on past changes in the money supply and note the resulting changes in the price level.

<h3>Further explanation </h3>

Economists cannot study complex relationships using data because they are unlike the researchers in the hard sciences that can run a controlled laboratory experiment for the generation of data to test the theories and relevant models. An economist would look for data on past changes in the money supply, and note the resulting changes in the price level

An economist can develop models and theories to provide a description of the world based on observed phenomena, because there is a close association between price and money.

Economists do not usually develop theoretical models of the economy but they only analyze the summary statistics about the current state of the economy. An economist would persuade the Federal Reserve to change the money supply to various levels, and also observe the resulting changes in the price level.

An economist supposed to believe that the price level in the economy is directly related to the money supply or the amount of money circulating in the economy. The following relationship is applied to that condition:

$P=A * M$ , where

P = Price Level

M = Money Supply

A = A composite of other factors including real GDP that change very slowly over time.

<h3 /><h3>Learn more</h3>

Learn more about relationship between money and the price level brainly.com/question/6696702

<h3>Answer details</h3>

Grade: 9

Subject: business

Chapter: relationship between money and the price level

Keywords: price level, money

You might be interested in

You were recently hired by RLM Inc. It is your job to prepare reports and analyze financial information related to the company.

Alex73 [517]

Answer:

d. management

Explanation:

Based on the job tasks described within the question it seems that you were recently hired as a management accountant. This role focuses on (like mentioned in the question) preparing reports and analyzing as much financial information as possible in order to best inform yourself, so that you can help you make the best and most strategic decisions for the organization. Which seems to by why RLM Inc. has hired you.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0

2 years ago

Does anyone know how to complete the "your checking account" packet? its for an Econ Ed class.

Elena-2011 [213]

Do you have a picture of it?

3 0

3 years ago

While showing a property to an unrepresented buyer, you owe the customer the duties of dealing honestly and fairly, accounting f

adelina 88 [10]

This is also known as the three duties towards the customer DAD Dealing with Honesty. Accounting for all funds and Disclosing the material facts to the buyer.

<h3>Who is a buyer?</h3>

A buyer is a customer who purchases the goods and or services of a company through which the company generates the revenue and earn profits. The buyer plays a key role in the development and running of a company.

The buyer should be allowed to have all the information about the product or service it is going to purchase, the buyer should be informed about the market rates and the demand of the goods as this is a material fact about the product.

Therefore it is a duty that a seller owes to the buyer to deal with honesty that is not charging high price if they are unaware of the price of the product.

Learn more about Buyer at brainly.com/question/27282505

#SPJ1

7 0

2 years ago

Chang Industries has 2,500 defective units of product that have already cost $14.50 each to produce. A salvage company will purc

Lubov Fominskaja [6]

Answer:

$27,250

Explanation:

The computation of incremental income or loss on reworking the units is shown below:-

For computing the incremental income or loss on reworking the units first we need to follow some steps which is shown below:-

Incremental revenue per unit = Selling price after rework - Selling price as scrap

= $22.00 - $5.60

= $16.40

Total Incremental Revenue = Incremental revenue per unit × Total defective units

= $16.40 × 2,500

= $41,000

Total rework costs = Total defective units × Defects per unit

= 2,500 × $5.50

= $13,750

Now,

Incremental income or loss on reworking the units = Total Incremental Revenue - Total rework costs

= $41,000 - $13,750

= $27,250

7 0

3 years ago

Darryl would like to work as an accountant full time. A full-time position is not available, however, so he must accept a part-t

ivolga24 [154]

Answer: Employed.

Explanation:

Daryl is employed, because he has a job, where he works 15 hours a week. The job although it is not a full-time job still is a form of employment, where Daryl works and is paid.

5 0

3 years ago