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Question 1: A fictional economy has a money supply of $20 billion. Moreover, the nominal GDP is $180 billion, the price level is 5, and
Question 1:
A fictional economy has a money supply of $20 billion. Moreover, the nominal GDP is $180 billion, the price level is 5, and the real GDP is $36 billion. How many times per year, on average, will a monetary unit be used to purchase goods and services?
Question 2:
The cash drain coefficient of an economy is 50%. The central bank introduced $1000 into the economy. At the end of the cycle the money supply has increased by $3000 What is the amount of new numeraire that was created in this process of creating $3000
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