[The following scenario applies to the next two questions.] In 20X2, real GDP = 783, the price level = 114, and the nominal wage rate= 35.48 / hour In 20X3, real GDP = 816, the price level = 161, and the nominal wage rate= 42.39 / hour The real interest rate, inflation rate, and bank transaction costs do not change, and the real demand for money is proportional to real GDP. Question 1.8: Nominal money supply What is the percentage change in the nominal money supply from 20X2 to 20X3? A. 42.93% B. 44.35% C. 45.76% D. 47.18% E. 48.60% Question 1.9: Marginal product of labor What is the percentage change in the marginal product of labor from 20X2 to 20X3? A. -15.40% B. -15.86% C. -16.33% D. -16.79% E. -17.25%

Give typing answer with explanation and conclusion    A standard "money demand" function used by macroeconomists has the form   ln(m)=β0+β1ln(GDP)+β2R,   Where m is the quantity of (real) money, GDP is the value of (real) gross domesticproduct, and R is the value of the nominal interest rate measured in percent per year. Supposed that β1 = 2.66 and β2 = −0.05.   A) What is the expected change in m if GDP increases by 4%?   The value of m is expected to_________(increase or decrease ) by approximately ________%   (Round your response to the nearest integer)   B) What is projected to change in m if the interest rate increases form 2% to 6% ?   The value of m is expected to ________(increase/decrease) by approximately ________%   (Round your response to the nearest integer)

Suppose that velocity of money is constant, the expected inflation rate is always equal to the actual inflation rate, and the expected real interest rate is 3%.  Answer the following questions. Justify your answers. -When the growth rate of the money supply is 8% and the growth rate of real GDP is 2%, what is the nominal interest rate?

According to the Quantity Theory of Money there is a direct relationship between money supply and inflation. In no more than 75 words, provide a brief and clear explanation of the precise quantitative nature of such a relationship.

An economy is at full employment and real GDP is $1,000 billion. The inflation rate is 3.0 percent a year, the price level is 1.2, and the velocity of circulation is 8.0.   What is the quantity of money? The quantity of money is _____ billion

Answer to 2 decimal digits

Money velocity in the country of Ecoland is always stable. In 2019 (the base year), the money supply was $250 billion. In 2020, the money supply increased to $350 billion, the price level increased by 25 percent, and nominal GDP equaled $1400 billion. By how much did real GDP increase between 2019 and 2020?   A) $15 billion     B) $ 50 billion     C) $12.5 billion     D) $150 billion

The quantity equation, also known as the equation of exchange, shows that the product of the money supply (M) and the velocity of money (V) is equal to the product of the price level (P) and real GDP (Q): Mx V = PxQ. Observe that when the left-hand side of the quantity equation, Mx V, changes by a given percentage, the right-hand side, P x Q, must change by the same percentage: Percentage Change in (Mx V) = = You can use the rule that the percentage change in the product of two variables is approximately equal to the sum of the percentage changes in each of the variables (as long as the percentage changes are fairly small) to further analyze changes in the variables of the quantity equation. In the following equation, let "%A" stand for "percentage change in": %AM+%AV = = Percentage Change in (PxQ) %AP+%AQ For example, if you know that the money supply grows at a rate of 8% per year, velocity grows at a rate of 1% per year, and real GDP grows at a rate of 5% per year, you can use this…

An increase in nominal GDP will Multiple Choice   increase the transactions demand and the total demand for money.   decrease the transactions demand and the total demand for money.   increase the transactions demand for money but decrease the total demand for money.   decrease the transactions demand for money but increase the total demand for money.

Q47 Which of the following is the definition for the real supply of money? Select one: a. the actual quantity of money, rather than the officially reported quantity. b. the stock of high powered money only. c. the ratio of the real GDP to the nominal money supply. d. the stock of money measured in terms of goods, not dollars.