Question
The money supply in Hykania is $200 million, and the velocity of money is 3. Real GDP is $400 million in 2014. The central bank
The money supply in Hykania is $200 million, and the velocity of money is 3. Real GDP is $400 million in 2014. The central bank of Hykania has instituted a policy of zero inflation. If real GDP grows by 2.5 percent in 2015, how will the central bank of Hykania change the money supply? What will happen to the real GDP, nominal GDP, and price level?
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
