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In the long-run, real GDP and velocity are out of the Federal reserve's control. The only goal of the Federal Reserve is to maintain the

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In the long-run, real GDP and velocity are out of the Federal reserve's control. The only goal of the Federal Reserve is to maintain the price level at 160. If your job as a policymaker is to offset any shocks by changing the supply of money in the economy, how would you set the level of M so that you meet your price-level target? Complete the following table: Year M V P Y 1 40,000 2 160 500 2 2.5 160 500 3 3 160 750 4 3 160 900

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