4. Velocity and the quantity equation Consider a simple economy that produces only air fryers. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $400, the price of a air fryer was $5.00, and the economy produced 800 air fryers. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money Price Level Quantity of Output Nominal GDP Year (Dollars) Velocity of Money (Dollars) (Air fryers) (Dollars) 2019 400 5.00 800 2020 412 10 800 The money supply grew at a rate of from 2019 to 2020. Since air fryer output did not change from 2019 to 2020 and the velocity of money , the change in the money supply was reflected in changes in the price level. The inflation rate from 2019 to 2020 was4. Velocity and the quantity equation Consider a simple economy that produces only air fryers. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $400, the price of a air fryer was $5.00, and the economy produced 800 air fryers. 155.00 160.00 Fill in the missing values in the following table, selecting the answers closest to the values you ca 4,000.00 Quantity of Money Price Level Quantity of Output DP 4,120.00 Year (Dollars) Velocity of Money (Dollars) (Air fryers) 2019 400 5.00 800 2020 412 10 800 The money supply grew at a rate of from 2019 to 2020. Since air fryer output did not change from 2019 to 2020 and the velocity of money , the change in the money supply was reflected in changes in the price level. The inflation rate from 2019 to 2020 was4. Velocity and the quantity equation Consider a simple economy that produces only air fryers. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $400, the price of a air fryer was $5.00, and the economy produced 800 air fryers. 0.52 Fill in the missing values in the following table, selecting the 0.53 5 closest to the values you calculate. Quantity of Money Pri 5.00 Quantity of Output Nominal GDP Year (Dollars) Velocity of Money (D (Air fryers) (Dollars) 5.15 2019 400 800 2020 412 10 800 The money supply grew at a rate of from 2019 to 2020. Since air fryer output did not change from 2019 to 2020 and the velocity of money , the change in the money supply was reflected in changes in the price level. The inflation rate from 2019 to 2020 was4. Velocity and the quantity equation Consider a simple economy that produces only air fryers. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $400, the price of a air fryer was $5.00, and the economy produced 800 air fryers. Fill in the missing values in the follow selecting the answers closest to the values you calculate. 0.63% Quantity of Money Price Level Quantity of Output Nominal GDP Year (Dollars) VE 1.48% Money (Dollars) (Air fryers) (Dollars) 2019 400 3% 5.00 800 2020 412 800 103% The money supply grew at a rate of from 2019 to 2020. Since air fryer output did not change from 2019 to 2020 and the velocity of money , the change in the money supply was reflected in changes in the price level. The inflation rate from 2019 to 2020 was4. Velocity and the quantity equation Consider a simple economy that produces only air fryers. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $400, the price of a air fryer was $5.00, and the economy produced 800 air fryers. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money Price Level Quantity of Output Nominal GDP Year Velocity of Money (Dollars) (Air fryers) (Dollars) 2019 increased 5.00 800 2020 decreased 10 800 remained the same The mo fate of from 2019 to 2020. Since air fryer output did not change from 2019 to 2020 and the velocity of money , the change in the money supply was reflected in changes in the price level. The inflation rate from 2019 to 2020 was4. Velocity and the quantity equation Consider a simple economy that produces only air fryers. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $400, the price of a air fryer was $5.00, and the economy produced 800 air fryers. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money Price Level Quantity of Output Nominal GDP Year (Dollars) Velocity of Money (Dollars) (Air fryers) (Dollars) 2019 400 5.00 800 2020 412 10 8 partially entirely The money supply grew at a rate of from 2019 to 2020. Since air frye d not change from 2019 to 2020 and the velocity of money , the change in the money supply was reflected in changes in the price level. The inflation rate from 2019 to 2020 was4. Velocity and the quantity equation Consider a simple economy that produces only air fryers. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $400, the price of a air fryer was $5.00, and the economy produced 800 air fryers. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money Price Level Quantity of Output Nominal GDP Year (D 0.63% Velocity of Money (Dollars) (Air fryers) (Dollars) 2019 5.00 800 1.48% 2020 10 800 3% The money supply rate of from 2019 to 2020. Since air fryer output did not change from 2019 to 2020 and the velocity of 103% money , the change in the money supply was reflected in changes in the price level. The inflation rate from 2019 to 2020 was5. Using money creation to pay for government spending Consider Arcadia, a hypothetical country that produces only crab cakes. In 2021, a crab cake is priced at $8.00. Complete the first row of the table with the quantity of crab cakes that can be bought with $900. Hint: In this problem, assume it is not possible to buy a fraction of a crab cake, and always round down to the nearest whole crab cake. For example, if your calculations result in 1.5 crab cakes, the answer should be 1 crab cake. Price of a Crab cake Crab cakes Bought with $900 Year (Dollars) (Quantity) 2021 8.00 900 2022 Suppose the government of Arcadia cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 50% by 2022. Assuming monetary neutrality holds, complete the second row of the table with the new price of a crab cake and the new quantity of crab cakes that can be bought with $900 in 2022. The impact of the government's decision to raise revenue by printing money on the value of money is known as the5. Using money creation to pay for government spending Consider Arcadia, a hypothetical country that produces only crab cakes. In 2021, a crab cake is priced at $8.00. Complete the first row of the table with the quantity of crab cakes that can be bought with $900. Hint: In this problem, assume it is not possible to buy a fraction of a crab cake, and always round down to the nearest whole crab cake. For example, if your calculations result in 1.5 crab cakes, the answer should be 1 crab cake. Price of a Crab cake Crab cakes Bought with $900 Year ( Dollars) (Quantity) 2021 8.00 900 2022 Suppose the government of Arcadia cannot raise sufficient tax revenue to pay its debts. In order to meet its debt ob ent prints Fisher effect money. As a result, the money supply rises by 50% by 2022. classical dichotomy Assuming monetary neutrality holds, complete the second row of the table with the new price of a crab cake and the velocity of money cakes that can be bought with $900 in 2022. inflation tax The impact of the government's decision to raise revenue by printing money on the value of money is known as the