Homework 2.docx - Homework 2 1 A B C Average annual growth rate i M2 9666.338217 ii CPI 220.6884142 iii GDP 16384.64014 D(Gm-Gy= π a

# Homework 2.docx - Homework 2 1 A B C Average annual growth...

• Homework Help
• 2

This preview shows page 1 - 2 out of 2 pages.

Homework 2 1) A) B) C) Average annual growth rate i. M2: 9666.338217 ii. CPI: 220.6884142 iii. GDP: 16384.64014 D) (Gm-Gy= π) a. 9666.338-13606.369= -3940.031 E) There seems to be a classical dichotomy, in which there is a theoretical separation between real and nominal quantities as discussed in lecture. This isn’t good in the short run because prices are relatively “sticky” in the short run.
2) Reading a. The three conclusions are: i. “In the long run, there is a high (almost unity) correlation between the rate of growth of the money supply and the rate of inflation. This holds across three definitions of money and across the full sample of countries and two subsamples.” (page 4) ii. “In the long run, there is no correlation between the growth rates of money

• Fall '09
• ROCHETEAU

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern