Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply. The size of the labor force The inflation rate The quantity of physical capital The price level Suppose the economy produces real GDP of $50 billion when unemployment is at its natural rate.

Therefore an increase in money growth will increase only the price level and inflation rate

Explanation:

(a) The concept of money neutrality tells that the change in money supply leads to changes only in nominal's variables such as price level, wages and inflation but have no impact on real variables e.g. production. Therefore an increase in money growth will increase only the price level and inflation rate

(b) The unemployment rate is at its natural level and the real GDP is $50 billion, since the unemployment rate is at is natural level the output must be at the natural level too. Therefore the current real GDP must be the long run real GDP.

(c) An increase in the minimium wage will cause the natural rate of unemployment to increase and that will lead to a fall in the natural level of output. Therefore an increase in the minimum wage will shift the long run aggregate supply curve to the left.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.