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Doss [256]
3 years ago
5

If the money supply is growing at a rate of 1010 percent per​ year, real GDP​ (real output) is growing at a rate of 11 percent p

er​ year, and velocityLOADING... is​ constant, what will the inflation rate​ be? nothing​%. ​(Enter your response as an integer value.​)
Business
1 answer:
Nat2105 [25]3 years ago
8 0

Answer:

The correct answer is 999%

Explanation:

We will use the Quantity Theory of Money to solve this simple question.

The Quantity Theory of Money equation is equal to:

ΔM X V = ΔP X ΔY

Where:

  • ΔM = Change in Money supply
  • V = Velocity, which does not change, because it is assumed to be constant
  • ΔP = Change in prices, or inflation
  • ΔY = Change in output or GDP

According to this theory, inflation is equal to:

ΔP = ΔM + V - ΔY

Replacing...

ΔP = 1010% + 0 - 11%

ΔP = 999%

So the price change, or inflation rate is 999%.

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The Activity of time per unit(min) (X)     0.25          0.33       0.2          0.5

Capacity per worker(units/min) (Y)          4              3             5             2

Number of workers (Z)                            2               3              2            4

Capacity (Units/min) (ZxY)                       8               9             10           8

A and D re the bottlenecks with a minimum capacity of 8 units/min

Hence, initial system capacity = 8 units/min

It is given that activity time per unit in D step is $\text{reduced by 0.25}$  min per unit

Capacity/worker = 1/0.25 = 4 per min

Number of worker for D = 4

New capacity of D per min = 4 x 4 = 16 units

Steps                                       A          B            C              D    

New capacity(units/min)        8           9            10             16

Therefore now, step A is the bottleneck as it has the lowest capacity of 8 units/min.

Capacity of the entire process = 8 units/min

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3 years ago
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Answer:

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<span>A country with a small GDP can have a large per capita income IF IT HAS A SMALL POPULATION. Per capita income is defined as the measure of the average income earned per person in a particular country in a specified year. It is determined by dividing the area's total income by its total population. The smaller the population, the higher the per capita income. </span>
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