Assume that the long-run aggregate supply curve is vertical at Y=3,000.while the short-run aggregate supply curve is horizontal atP=1.0. The aggregate demand curve isY=2(M/P) and M=1500.

1. What is the velocity of money in this case?
2. Suppose the aggregate demand function shifts to. What are the short-run values of
3. What is the velocity of money in this case?
4. With the new aggregate demand function, once the economy adjusts to long-run equilibrium, what are
5. What is the velocity now?