Macroeconomics

posted by .

The money supply in Freedonia is $200 billion. Nominal GDP is $800 billion and real GDP is $400 billion. Assuming that velocity is stable, if real GDP grows by 10 percent this year, and if the money supply does not change this year, what is the change of price level?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    If a government raises its expenditures by $50 billion and at the same time levies a lump-sum tax of $50 billion, the net effect on the economy will be to: a. increase GDP by less than $50 billion b. increase GDP by more than $50 billion …
  2. Economics

    Suppose that S(savings) = $4 billion when Real GDP = $200 billion & S(savings) = $104 billion when Real GDP = $600 billion. If Autonomous investment falls by $100 billion what would be the effect on Real GDPeqm.?
  3. ECON--HELP!?!?!

    1. In the Country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
  4. macroeconomics

    Year - 2000 Nominal GDP: 9,817 Real GDP: ___________ GDP Deflator: 1 Inflation 2.2 Real GDP Per capita: _________ Population 283.7 Year – 2001 Nominal GDP: ________ Real GDP: 9,891 GDP Deflator: _________ Inflation 2.4 Real GDP Per …
  5. Macroeconomics

    suppose that this year's money supply is $500b, nominal gdp is $10trillion, and real gdp is $5trillion, what is the price level and velocity of money?
  6. Macroeconomics,

    If nominal GDP is $300 billion and the money supply is $20 billion, What must be the velocity?
  7. Macroeconomics,

    If nominal GDP is $300 billion and the money supply is $20 billion, What must be the velocity?
  8. Macroeconomics

    Wondering if I am doing this correctly?? If net taxes are increased by 3 billion dollars by how much would we expect real GDP to change?
  9. economics

    in 1990, US nominal GDP was $5,744 billion and the GDP chain price index is 93.6. Real GDP in 1996 dollars is approximately:
  10. ECO

    suppose US nominal GDP was $6,250 billion in 2000 and GDP chain price index is 125.0. Real GDP is:

More Similar Questions