Question
1.Suppose the money supply is 100, the velocity of money is 3, the price level is 5 and real GDP is 60. An unanticipated increase
1.Suppose the money supply is 100, the velocity of money is 3, the price level is 5 and real GDP is 60. An unanticipated increase in the money supply to 200 increases GDP to 100 in the short run, but then real GDP returns to 60 on the long run. Assuming the velocity of money remains constant, what will happen to prices in the short run? In the long run?
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Principles Of Financial Accounting
Authors: John J Wild, Ken W Shaw, Barbara Chiappetta
22nd Edition
0077632893, 9780077632892
