Economic growth is 3%, money supply increases by 8% and inflation is 3% (all annual changes). How does the velocity of money change?

a. The turnover rate decreases by 2% b. Turnover rate increases by 2% c. Turnover rate drops by 8% d. The turnover rate is unchanged e. Turnover rate increases by 6%

Let's assume that the efficient wage setting of companies is determined by the equation

Wd = (1.04 - 0.5u)W

What is the natural rate of unemployment (un)?

a. 6% b. 4% c. 8% d. 10% e. 2%

Assume that the production function is Y = 100*(K*N)1/2 and that K=16 and N=25.

Markup is 20% and wages are W = 100. What is the price P?

a. 6 b. 5 c. 1 d. 4 e. 2 f. 3