1. Please define the Quantity Theory of Money.
2. If the quantity of money in an economy is $2 Trillion, the average number of times a dollar is exchanged in the economy in a single year is 3, and the real output of the economy is $4.5 trillion dollars what is the Price Level in the economy?
3. Consider the distributional effects of inflation. If inflation unexpectedly rises (or rises faster than expected), who would be the winners and who would be the losers of the price-level change in our economy? Please give two examples of each.