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Imagine an economy where the price level is 1.5, where real GDP is $240 billion like potential GDP, and where the money supply is $60

Imagine an economy where the price level is 1.5, where real GDP is $240 billion like potential GDP, and where the money supply is $60 billion.

a.1. How fast is money circulating?

a.2. If the money supply increases to $80B, what will be the long-term result of this increase according to the quantity theory of money (TQM)?

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