Question
The velocity of money in the small Republic of Sloagia is always the same. Last year, the money supply was $ 10 billion and real
The velocity of money in the small Republic of Sloagia is always the same. Last year, the money supply was $ 10 billion and real GDP was $ 17 billion.
This year, the money supply increased by 6 percent, real GDP by 2.1 percent, and nominal GDP is $ 17 billion.
Calculate the velocity of money
The price level last year,
The Price level this year
The inflation rate.
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
