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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Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
4th edition
978-0324581621, 324581629, 324660545, 978-0324660548
