Quantecon is a country in which the quantity theory of money operates. The country has a constant population, capital stock and technology. In year 1 real gdp was 400 million. the price level was 200, and the velocity of circulation was 20.

In year 2, the quanitity of money was 20 percent higher than in year 1

The quantity of money in year 1 was ________

The quantity of money in year 2 was _________

Price level in year 2 is________

correct answer is 40 million/ 48 million/ 240

Please explain how.