Ads
點樣決定supply curve 係打直?
用「短期內能唔能增加supply」咁去決定令我好難捉摸 :^(
同埋mc通常有條
Xxxx price increase 30% ,quantity decrease 50%
A:elastic demand
B:inelastic demand
C:elastic supply
D:inelastic supply
點樣決定demand定supply? :^(
同埋mc通常有條
Xxxx price increase 30% ,quantity decrease 50%
A:elastic demand
B:inelastic demand
C:elastic supply
D:inelastic supply
點樣決定demand定supply? :^(
唔好溫啦 早啲休息啦 :^(
Ads
同埋mc通常有條
Xxxx price increase 30% ,quantity decrease 50%
A:elastic demand
B:inelastic demand
C:elastic supply
D:inelastic supply
點樣決定demand定supply? :^(
唔好溫啦 早啲休息啦 :^(
以前亂咁黎
2002 Q. 2
State whether each of the following statements is true or false, and provide a brief explanation to support your answer.
(a) The quantity theory of money predicts that inflation is not necessarily consequence of money growth. (5 marks)
According to the quantity theory of money, MV = PY. If velocity of circulation and the output level remain constant, a continuous rise in price level will only occur due to continuous growth in money supply.
However, even without money growth, inflation may still occur. For example, if the velocity of circulation is increasing while the output is at full employment level, inflation will occur even there is no increase in money supply.
On the other hand, if velocity is constant and output is declining, inflation will also occur even there is no increase in money supply.
(b) The quantity theory of money predicts that financial innovations such as electronic money can increase output even in the absence of changes in the money supply.
(5 marks)
As QTM states that MV = PY, by keeping the price level constant, output will increase if there is a rise in money supply or a rise in velocity of circulation of money.
With financial innovations such as electronic money, the demand for cash will fall which will speed up the circulation of money. Hence, output can be increase even the money supply remains unchanged.
1999 Q. 4
(a) Milton Friedman once made the statement; ‘Inflation is always and everywhere a monetary phenomenon.’ In what sense do you think inflation is related to monetary factors? (4 marks)
According to the quantity theory of money, MV = PY
Where M is quantity of money; V is velocity of circulation and PY is nominal output
As V and Q is assumed to be constant, whenever there is an increase in money supply, there will be an equal proportion of rise in price level. This is because with an increase in money supply, people can have more money to spend. However, since the economy is assumed to be at full employment, the quantities of goods remain unchanged. Hence, the price of goods will rise at the same proportion of the increase in money supply. Thus, it is correct to say that inflation is related to monetary factors.
(b) Using the quantity theory of money, explain why, in the absence of changes in money supply, inflation can also be caused by real factors such as changes in real output. (4 marks)
According to the quantity theory of money, i.e. MV = PQ, we can see that in the absence of changes in money supply, price level can still rise. Assuming that the velocity of circulation V is constant, if there is a fall in the quantity of output, we will use the same quantity of money to buy a smaller quantity of goods. Eventually, the prices of goods will rise and inflation results. So, in the absence of changes in money supply, a fall in real output will also cause inflation.
(c) It does not, however, follow from (b) that Friedman’s statement is invalid. In what sense can inflation be regarded as a monetary phenomenon if it can also arise from changes in real output? (2 marks)
If we interpret the expression monetary phenomenon broadly to incorporate variables that influence the real demand for money as well as the nominal supply of money, then the change in real output considered in (b) above can be thought of as a cause of a reduction in the transactions demand for real balances. Thus, when real output falls, the nominal money stock will become excessive. This will ultimately lead to a reduction in the value of money, in other words a rise in the general price level. Hence, inflation can still be regarded as a monetary phenomenon.
同埋mc通常有條
Xxxx price increase 30% ,quantity decrease 50%
A:elastic demand
B:inelastic demand
C:elastic supply
D:inelastic supply
點樣決定demand定supply? :^(
同埋mc通常有條
Xxxx price increase 30% ,quantity decrease 50%
A:elastic demand
B:inelastic demand
C:elastic supply
D:inelastic supply
點樣決定demand定supply? :^(
同埋mc通常有條
Xxxx price increase 30% ,quantity decrease 50%
A:elastic demand
B:inelastic demand
C:elastic supply
D:inelastic supply
點樣決定demand定supply? :^(
唔好溫啦 早啲休息啦 :^(
Demand price 升 quantity 跌
Supply price 升 quantity 升
同埋mc通常有條
Xxxx price increase 30% ,quantity decrease 50%
A:elastic demand
B:inelastic demand
C:elastic supply
D:inelastic supply
點樣決定demand定supply? :^(
你睇下我個final reminder 啦 :^(
同埋mc通常有條
Xxxx price increase 30% ,quantity decrease 50%
A:elastic demand
B:inelastic demand
C:elastic supply
D:inelastic supply
點樣決定demand定supply? :^(
唔好溫啦 早啲休息啦 :^(
Demand price 升 quantity 跌
Supply price 升 quantity 升
:^( :^( :^(
同埋mc通常有條
Xxxx price increase 30% ,quantity decrease 50%
A:elastic demand
B:inelastic demand
C:elastic supply
D:inelastic supply
點樣決定demand定supply? :^(
有無巴打可以解釋下inflationary gap嘅出現?好難記 :^(
推
Ads
有無巴打可以解釋下inflationary gap嘅出現?好難記 :^(
推
DSE standard
Short run QTM: V constant
Long run / Classical QTM: V, Y constant