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3 years ago

Suppose that this year's money supply is $400 billion, nominal GDP is $12 trillion, and real GDP is $4 trillion.

Business

1 answer:

Natali [406]3 years ago

3 0

Answer:

1. Price Level

= Nominal GDP/Real GDP

= 12 trillion/4 trillion

= $3

b. Velocity

= Price level * Real GDP/ Money supply

= 3 * 4/0.4

= 30

2. If the Fed keeps the money supply constant, the price level will Decrease , and nominal GDP will Remain the same .

The economy rose however money supply was kept constant. This means that prices could not rise and so had to decrease to cater for the increase in output. With lower prices but higher output, the Nominal GDP remained the same.

3. If the Fed wants to keep the price level stable instead, it should keep the money supply unchanged next year. TRUE

4. If the Fed wants an inflation rate of 11 percent instead, it should Increase the money supply by 14%.

(Percentage Change in Money supply) + (Percentage Change in V) = (Percentage Change in Price) + (Percentage Change in GDP).)

V is constant so is 0.

(Percentage Change in M) = (Percentage Change in P) + (Percentage Change in Y).)

= 11% + 3%

= 14%

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antoniya [11.8K]

Answer:

The correct answer is: Management by Objectives (MBO).

Explanation:

Management by Objectives (MBO) is a process in which a manager an employees agree on specific performance goals and then develop a plan to reach those goals. First outlined in Peter Drucker's 1954 book "The Practice of Management", MBO ensures better employee participation and commitment while aligning objectives throughout an organization.

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3 years ago

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Sedaia [141]

Answer:

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3 years ago

Universal Travel Inc. borrowed $497,000 on November 1, 2018, and signed a 12-month note bearing interest at 4%. Interest is paya

never [62]

Answer:

Dec 31, 2018

Interest expense 3313.33 Dr

Interest Payable 3313.33 Cr

Explanation:

The note interest is payable at an annual rate of 4%. The interest will be paid at maturity however, an adjusting entry will be made on December 31, 2018 following the accrual basis of accounting to record the interest expense that relates to the period from November to December of 2018. The interest expense will be debited and as the interest will be paid at maturity, interest payable will be credited.

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3 years ago

What do we call computerized machine that allows Bank customers to perform transitions

vova2212 [387]

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3 years ago

Read 2 more answers

The GAP is a global clothing retailer for men, women, children, and babies. The following information is taken from The Sap's fi

Alexxandr [17]

Answer:

The GAP

a. Cost of goods sold = $10,364

b. Cash paid to suppliers = $10,409

Explanation:

a) Data and Calculations:

Selected Balance Sheet Data

($ millions) 2015 2014

Inventories $1,918 $1,844

Accounts Payable 1,157 1,128

Purchases during 2015 = $10,438 million

b) Cost of goods sold:

Beginning inventory $1,844

Purchases 10,438

Goods available $12,282

Ending inventory (1,918)

Cost of goods sold $10,364

c) Accounts Payable:

Beginning balance $1,128

Purchases 10,438

Less ending balance 1,157

Cash paid to suppliers $10,409

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3 years ago