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lord [1]
3 years ago
14

Suppose that the quantity of money in circulation is fixed but the income velocity of money doubles. If real GDP remains at its

long-run potential level, what happens to the equilibrium price level?
Business
1 answer:
Shalnov [3]3 years ago
4 0

Answer:

The equilibrium price level will double.

Explanation:

Suppose that the economy has a money supply of $4 billion and the income velocity of money is 8, the price level will be 4 and the real GDP is $8 billion. The formula we are using is:

  • Money supply x velocity = price level x real GDP

If the money supply remains the same ($4 billion), the income velocity of money is 16 (it doubles), and the real GDP is $8 billion, then the price level will be:

$4 x 16 = price level x $8

$64 = price level x $8

price level = $64 / $8 = 8

So the price level has doubled to 8.

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If the CPI rises to 150 from 120, then prices have
exis [7]

Answer:

B) risen 25 percent.

Explanation:

The inflation rate is the rate at which overall prices are increasing in the economy in a period. It is expressed as a CPI value.

Given CPI for different periods, inflation can be calculated using the formula below.

Inflation =<u> new CPI - old CPI</u>   x 100

  old CPI

In the case

The inflation rate will be <u>150- 120</u>   x 100

        120

=30/120 x 100

=25%

3 0
4 years ago
Which of the following types of training should employers NOT provide to their workers? (1 point)
solong [7]

Correct answer choice is:

D. Accident investigation.

Explanation:

An accident investigation is a method of concluding the source cases of accidents, on-the-job damages, resources destruction, and alike notes in classification to stop them from happening repeatedly.

When conflicts are reviewed, the importance should be focused on determining the root reason of the occurrence so you can block the event from occurring again. The goal is to find evidence that can direct to remedial activities, not to determine responsibility. Constantly look for distant causes.

6 0
3 years ago
Read 2 more answers
As an advertising manager of a company, you have been asked to write out a proposal stating why the company should advertise and
e-lub [12.9K]

Answer:

Advertising

Explanation:

Considering the present market conditions in which this organization operates I propose to the Company Board that the organization starts advertising on various platforms considering the following reasons:

1. Increase Profit:

When we advertise, we create more sales which in turn leads to an increase in profits.

2. Market share:

The market share for this the company expands as a result of increased customers; due to advertising.

3. Builds Goodwill:

As the company becomes a very popular company because of growing advertising it will increase the trust if customers coming.

3 0
3 years ago
This activity is important because any business that offers multiple product lines to multiple market segments is faced with the
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7 0
4 years ago
Zahara is concerned about taking on too much risk in her investment portfolio. She has some government bonds and some speculativ
harina [27]

One truth about Zahara's risk levels is that<u> D. The </u><u>speculative investments </u><u>are </u><u>high risk </u><u>but can </u><u>pay returns quickly.</u>

<h3>What are speculative investments?</h3>
  • Investments that are bought for their tendency to change prices often.
  • Are known to be risky.

By investing in speculative investments, Zahara is incurring risk but as a result, she stands to gain returns quickly if the investments should increase in price.

In conclusion, option D is correct.

Find out more on speculative investments at brainly.com/question/13827370.

3 0
2 years ago
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