Friedmania Is a Country in Which the Quantity Theory of Money

question 357

Essay

Friedmania is a country in which the quantity theory of money operates.The country has a constant population,capital stock,and technology so real GDP does not change.In 2010,real GDP was $500 million,the price level,measured by the GDP deflator,was 150 and the velocity of circulation of money was 10.(Because the price level is measured by the GDP deflator,it must be divided by 100 before it is used in the equation of exchange.) In 2011,the quantity of money increased by 20 percent.
a) What was the quantity of money in 2010?
b) What was the velocity of circulation in 2011?
c) What was the price level in 2010?

Grasp the role of financial ratios and metrics in planning for sustainable business growth.

Understand the significance of inventory management and accounts receivable in operational planning.

Recognize the importance of reasonable assumptions in financial forecasting and planning.

Analyze the implications of dividend policies on a company's growth and financing strategies.

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Definitions:

Cost Per Trainee

The expense incurred by an organization for training a single participant, inclusive of all related costs.

Four-Step Process

A systematic method that typically involves identifying a problem, developing a plan, executing the plan, and evaluating the results.

Expressive Trainer

An instructor who uses emotion and enthusiasm to engage and motivate learners during training sessions.

Training Program

A structured sequence of education or skill development activities designed to achieve specific learning outcomes or improve performance.