The following table has the money supply measured in M1 for the first 5 years of the Great Depression. It also has the nominal GDP for the same 5 years. Explain your answer to number 6. Connect your answer to at least one of the factors that affects velocity you learned in this module.

Money in Nominal GDP Year Billions of in Billions of Dollars Dollars 29 $25.6 1930 $25.5 1931 $23.5 1932 $20.6 1933 $19.5 Now use the the data for 1929 to calculate what the simple quantity theory of money would have predicted nominal GDP would be in the years that followed. Remember, M x V = Nominal GDF and the simple quantity theory assumes that V stays xed over time. 1. Predicted GDP for 1930? 2. Predicted GDP for 1931? 3. Predicted GDP for 1932? 4. Predicted GDP for 1933? 5. Comparing your predicted GDP to the actual GDP, was velocity rising, falling, or staying the same over these 4 years? You don't have to give an answer for each year, just a general answer covering all 4 years. 6. Is the change (or no change) in velocity you answered in #5 a surprise or should it be expected. Answer by writing "surprise" or "expected"