Question
The velocity of money in the small Republic of Sloagia is always the same. Last year, the money supply was $ 7 billion and the
The velocity of money in the small Republic of Sloagia is always the same. Last year, the money supply was $ 7 billion and the real GDP was $ 20 billion.
This year, the money supply increased by 7 percent, real GDP by 3 percent, and nominal GDP is $ 15 billion.
Calculate the velocity of money
The price level last year,
The Price level this year
The inflation rate.
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
8th edition
134492005, 978-0134492001
