Question
The money supply in Freedonia this year is $150 billion. Nominal GDP is $750 billion and real GDP is $250 billion. Assuming that velocity of
The money supply in Freedonia this year is $150 billion. Nominal GDP is $750 billion and real GDP is $250 billion. Assuming that velocity of money is stable, real GDP grows by 2% this year, and the money supply does not change. What are the velocity, price level, and inflation rate this year?
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Macroeconomics
Authors: David C. Colander
10th edition
1259663043, 1259663048, 978-1259663048
