Seattlecentraleda/courses/49723/quizzes/5226623/take D Question 4 2 pts a, If the growth rate of the money supply is 0.04 and the growth rate of velocity is 0.01, we can write aggregate demand as growth rate = X - inflation rate. What is X? (Give answer as a decimal) D Question 5 8 pts Let the money base be $400, the reserve ratio be .20 and assume banks hold no excess reserves and the public holds no currency. (Answers are integers except where indicated. Do not add dollar signs.) a. What is M2? b. Now let the velocity of M2 be 3. What is NGDP? C. Let's say that the central bank wants to increase NGDP by 600. In this case, they should ("buy" or "sell") treasury securities worth dollars. NASAL 4 & 6 7 8 9 OPecanwins seattlecentraledu/courses/1949723/quizzes/5225623/take DI Question 6 4 pts The working age population of some country is 10,000. Of these 3,600 are employed and 400 are unemployed. (Answer as percentages--but don't add the % sign, I did it for you already.) a. What is the labor force participation rate? % b. What is the unemployment rate? % D Question 7 12 pts An economy produces two goods: fish and coconuts. The prices and quantities for two years are given below. Fish-Q Fish-P Coconut-Q Coconut-P 2001 300 $5 600 $3 2002 350 600 $3.5 Fill in the following table, (Round to the nearest whole number.) NGDP GDP Deflator RGDP 2001 82 2002 88 KANAN & 5 6 7 BD Question 7 12 pts An economy produces two goods: fish and coconuts. The prices and quantities for two years are given below. Fish-Q Fish-P Coconut-Q Coconut-P 2001 300 $5 600 $3 2002 350 $5 600 $3.5 Fill in the following table, (Round to the nearest whole number.) NGDP GDP Deflator RGDP 2001 82 2002 88 What was the inflation rate? (Answer as a decimal. Round to three decimal places, You should use the information in the second table to answer this, not the first.) What was the economic growth rate? (Answer as a decimal. Round to two decimal places. Assume the population doesn't change.) KAANY & 5 6 7 8 9canvas seattlecentraledu/courses/\\949723/quizzes/5226623/take What was the inflation rate? (Answer as a decimal. Round to three decimal places. You should use the information in the second table to answer this, not the first.) What was the economic growth rate? (Answer as a decimal. Round to two decimal places. Assume the population doesn't change.) D Answer these questions on a sheet of paper and submit a picture/pictures on the assignment named "Final Upload" This must be done within 10 minutes of finishing this quiz. 1. Imagine that there is an increase in technology which makes capital more productive. a. Show the effect of this on steady state levels of output and capital, b. Show the effect in the market for loanable funds. Show the effect on AS/AD in the long run. 2. Imagine that there is a fall in the money supply. Show the effect of this in the short run and the long run. (Make it clear what is SR and what is LR!) Say what happens to nominal wages in the short run and what happens to them in the long run. No new data to save. Last checked at 3:12pm Submit Quiz lig ANNAN CHAINS 96 5 7 8 9Inflation is (usually) caused by increasing [ Choose ] D Question 2 6 pts Let the production function for an economy be Y=AK1/2L1/2 where Y is output, K is capital, L is labor and A is "ideas." If A-20, L=16, the savings rate is 1/5 and the depreciation rate is 1/2, find the steady-state levels of capital, output and consumption. [ Answers are all whole numbers.] K's D Question 3 2 pts What is the price of a risk free, one year bond with a faced value of 378 if the real interest rate is 5% and the expected inflation rate is 3%? NANNY KAANY 5 7 8seattlecentraledw/courses/1949723/quizzes/5226623/take Complete the following statements. Answers may be used more than once or not at all. in the long run money is [ Choose ] The main factor explaining the difference in wealth between countries is [ Choose ] The price of loanable funds is [ Choose ] The rate of change in the price level is [ Choose ] A firm will invest such that 1+r is equal to [ Choose ] What we call unemployment which is NOT part of the natural rate [Choose ] The difference between the nominal and real interest rates is [ Choose ] SRAS is upward-sloping because of [ Choose ] When interest rates increase, bond prices [ Choose ] Inflation is (usually) caused by increasing [ Choose ] %
