Economics, please help! BLANKS 1. decreases / increases 2. rise / fall 3. raises

Question

Economics, please help!

BLANKS
1. decreases / increases
2. rise / fall
3. raises / reduces
4. lower / higher
5. price level / velocity of money / aggregate output
6. decline / rise

7. temporary / permanent
8. increase / decrease
9. permanent / temporary
10. decrease / increase

The last question reads:

True or False: Money growth is closely related to inflation.

Aplia: Student Question x D courses aplia.com/af servlet/quiz?quiz action-takeQuiz&quiz-probGuid-Q4PLC0A8010100000030da8ae0090000;&ctx;=asoka2000-0074&ck-1-1468315364899; 0AAA055801553B576A8C0BD30000 7 : Apps Nothing s Free Da Ambition vs Disconte California Real Estate Power Real Estate In p a Principles of Account Chess Traps: Bobby F 0 Mark Cuban & Tai Lo How to nvest during O Ten Commandment Current Fund Docume E » 6. Monetary policy in the long run Consider a hypothetical economy that produces at its long-run macroeconomic equilibrium at a price level of 100 Suppose the real GDP of this economy grows at an annual rate of 5%. Assume that the central bank would like to keep the inflation rate at 2% per year. If the velocity of money remains constant, the central bank can achieve its goal by pursing an annual money growth rate of Suppose the central bank enacts an unanticipated restrictive monetary policy. As a result, the supply of loanable funds , leading to a money balances in short-term interest rates. This in turn the opportunity cost of holding money. As people hold Will True or False: A change in monetary policy can often exert an impact on the price level more immediately than on aggregate demand True False The following graph shows the goods and services market of this economy at full employment. Assume that potential output remains constant Adjust the graph to show the long-run effect of an unanticipated restrictive monetary policy on the goods and services market by dragging the aggregate demand (AD) curve, the short-run aggregate supply (AS) curve, or both The Market for Goods and Services AS AD Session Timeout 58:10 AS I'm Cortana. Ask me anything 2:24 AM 7/12/2016

Explanation / Answer

The equation for GDP is: GDP = Money Supply  x Velocity of Money.

1.Decreases

2.rise

3.Raises.

4.lower

5.Aggregate output.

6.Rise.

True.

&.

8.decrease.

9.Permanent

10.Decrease.

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