1. Suppose a country A’s nominal GDP in 2019 is $15 trillion, and the consumer price index in 2019 is 200. A’s nominal GDP in 2018 is $10 trillion, and the price index in 2018 is 190. What is the nominal GDP growth rate, real GDP growth rate, and inflation rate in 2019?  2. Suppose an economy in which real GDP is 1000, the velocity of money is 10, and the quantity of money (M1) is 1500. How much will the price level change if the velocity of money rises to 12?(Hint: think about the equation of exchange).

Q: The relationship between inflation rate and growth rate of real GDP 50% 45% 40% 35% 30% 25% 20% 15%…

A: Inflation: It is the overall rise in the level of prices in the economy. In other words, it can be…

Q: A researcher finds that, for an economy, the nominal GDP in the year 2015 equaled the nominal GDP in…

A: GDP refers to the value of all final goods and services produced in an economy over a given period…

Q: 12. An economy has the following data: Current Unemployment Rate = 3.5%; Current Inflation Rate…

A: Real GDP is the inflation adjusted measure of the value of all goods and services produced in an…

Q: 2018 Price $4 2019 Price $4.50 $18 2020 Qty 600 Qty Qty Price Butter 500 $5.00 $15 $2.50 520 Clothes…

A: Gross domestic product is a monetary measure of the market value of all services and the final goods…

Q: QUESTION 5 1. According to the quantity theory of money, a 10% increase in the quantity of money…

A: As per the quantity theory of money, the general value level of labor and products is corresponding…

Q: 1980 Base Year 1981 QTY Item Price Qty Item Price 1 Rubik's Cube 4.99 2 Rubik's Cube 5.25 1 Atari…

A: A basket of goods is a set of consumer products and services whose price is evaluated on a regular…

Q: According to the simple monetary model, if the growth rate of real income is higher in NZ, then…

A: The simple monetary model is a theoretical framework in international economics that analyzes…

Q: 4. Price of 1 kilo potatoes on Tuesday is 36dhs. Same kilo of potatoes is 60dhs on Friday. When…

A: Economics is the study of how the scarce resources of society are exploited. It is a social science…

Q: QUESTION 5 1. If GDP grew 3% in 1970, 2.2% in 1971 and 2.5% in 1972 then, what is the average annual…

A: GDP or Gross Domestic product is the total value of the final goods and services produced in an…

Q: Calculate the growth rate of real GDP in 1998. 5. Calculate the growth rate of nominal GDP in 1998.…

A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…

Q: Calculate the percentage change of each of these three components of M2 (not included in M1) from…

A: The formula of percentage change is : Change = old value-new valueold number×100

Q: 23. An understanding of the state of the economy, projections on economic growth, the floor…

A: With understanding of the macro economic picture with respect to economic structure, business…

Q: People argue over if a strong dollar or weak dollar is good for the US economy. Is a strong dollar…

A: In the international currency market, the terms 'weak dollar' and 'strong dollar' are used to…

Q: 3. Answer the following questions with the help of graphs: a. If interest rates are expected to…

A: Monetary policy refers to the policy framed by the central bank of any country. Monetary policy…

Q: 5. How would inflation affect the value of US dollars in America? How would this affect the…

A: The steady loss of a currency's purchasing power is referred to as inflation. The rate at which a…

Q: "Japan's real gross domestic product (GDP) inched up 0.3 percent in the second quarter compared to…

A: One of the most crucial metrics for assessing how effectively or poorly an economy is performing is…

Q: 01.00 D0.50 0.03 100.20 100.00 99.80 99.60 99.40 99.20 0.02 0.02 0.01 00.00 0.01 09.50 09.00 -0.01…

A: *Answer:    The Taylor Rule is a methodology for projecting interest rates that was developed by…

Q: 22.The equation of exchange summarizes the long-run relationship between a. inflation and…

A: The SR in the macroeconomic sense signifies that time period when the economic variables like wages…

Q: In a circular flow diagram, firms' payments _____the government a.only flow into b.only flow out of…

A: In a circular flow digram, firms make payments to the government in the form of various taxes such…

Q: The measure of how many times a unit of currency is used for economic transactions in an economy is…

A: Below is the equation for quantity theory for money. M × V = P × YMoney supply = MVelocity = VPrice…

Q: If the economy is at potential GDP and the SARB increases the quantity of money, then Select one: a.…

A: Here answer is “Real GDP rises temporarily above potential GDP”

Q: Assume GDP is currently $12,800 billion per year and the quantity of money is $512 billion.    What…

A: Given that:- GDP                                       = $ 12800 billion per year Quantity of money…

Q: 24. Let i be the rate of inflation and r the nominal interest rate. (We used pi to denote the rate…

A: Here, correct option for real interest rate is required to find out.

Q: Part B: Growth rate in 2018 for Real GDP= 3.00% Growth rate in 2018 for Nominal GDP= 6.76% Growth…

A: Business cycle is known as the fluctuations in a country's economy over a period of time. There are…

Q: Show by graph and explain the effects of an increase in National Income in money market.

A: In the Keynesian theory, the equilibrium interest rate in the money market is determined by the…

Q: How might a rapid rise in inflation harm you? How might a rapid rise in inflation help you? In…

A: Inflation is rate of increase in price level over a given period of time. Low level of inflation is…

Q: Question 18   You borrow money for a new car at a rate of 5%; inflation is at 4%. From this…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 3. Read the quote below. Then answer the following questions. [Beginning of Quote] Europeans Are…

A: (a) Given, interest rate = -0.0172 Fee paid = $1 Loan amount = [(Fee)/1+r] * 100…

Q: You deposit​ $200 in a savings account on January​ 1, and the bank pays you interest of​ $10 at the…

A: Real interest rate is adjusted for the inflation.

Q: If gross domestic product increased by 4 percent, the rate of inflation was 3 percent, unemployment…

A: please find the answer below.

Q: Pangea has $ 500 billion in National Savings and $ -100 billion in Public Savings. What is Pangea's…

A: According to the national income accounting-National saving is equal to the income that remains…

Q: An increase in inflation in the United States relative to the rate in France would make:   a.…

A: Inflation means a rise in the overall price level in the economy.

Q: In the 2000s savings and loans institutions significantly increased the number of subprime mortgages…

A: A subprime mortgage refers to the form of debt instrument that is given to individuals who have a…

Q: 3. Consider two countries, A and C. At the beginning of the year, the CPI of Country A was 100,…

A: Foreign Exchange  Exchanging currencies between nations at market rates is referred to as the…