1. Define the following in the following variables in the equation of exchange or quantity equation which states: (M x V) = GDP = (Y x PL) (use a concise phrase to define each) a. M is an abbreviation for the size of nation's Money Supply Money Supply is defined as the total quantity of money held by all households, all firms and all governments in the sconomy b. V is an abbreviation for the income Velocity of money income Velocity of money is defined as c. GDP is an abbreviation for Gross Domestic Product GDP is defined as d. Qor Y is an abbreviation for real aggregate output Real aggregate output is defined as e. PL is an abbreviation for the Price Level Price Level is defined as Inflation rate is defined as the f. Inflation rate is g. Deflation rate is Deflation rate is defined as the b. The following is the equation of exchange is rewritten terms of % changes, % A M %4 %4 Y + %4 P 1. Determine the injurion rate, if the Money supply increases by 6% annually and V and Y stay the same. J. Determine the deflation rate if the Money supply decreases 2% annually and Y and Y stay the same