• Let’s focus on the second quarter since the change in velocity is so dramatic. During that quarter, the CPI fell by 0.9%, real GDP fell by 9.0%, the money supply rose by 23%, and velocity changed by %. Give your answer to one decimal.
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The figure below shows the percentage change in the M1, which is the money supply, the CPI, and real GDP for the first three quarters of 2020. FRED M1 Money Stock 25 Consumer Price Index for All Urban Consumers: All Items in U.S. City Average Real Gross Domestic Product Percent Change -5 0 20 15 10 -10 Q1 2020 14 OF 17 QUESTIONS COMPLETED Q2 2020 LL Q3 2020 Sources: BEA, BLS, Board of Governors myf.red/g/y9tj < 11/17 > SUBMIT ANSWER