This question concerns the quantity theory of money (a) Write down the quantity equation. Identify all four variables. Then, indicate what happens to the level of prices of the money supply doubles?

(b) Rewrite the quantity equation in terms of growth rates. Solve for the rate of inflation. According to this model, what determines the long-run rate of inflation'?

(c) If real output grows 3 percent per year and the velocity of money is constant, what must the growth rate of money be to ensure that inflation is 5 percent?

Doogan corporation makes a product with the following standard costs: standard quantity or hours standard price or rate direct materials 2.0 grams $ 7.00 per gram direct labor 1.6 hours $ 12.00 per hour variable overhead 1.6 hours $ 6.00 per hour the company produced 5,000 units in january using 10,340 grams of direct material and 2,320 direct labor-hours. during the month, the company purchased 10,910 grams of the direct material at $7.30 per gram. the actual direct labor rate was $12.85 per hour and the actual variable overhead rate was $5.80 per hour. the company applies variable overhead on the basis of direct labor-hours. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for january is: