Solved

Suppose Money Supply (M) = $500, Real GDP (Y) =

Question 119

Multiple Choice

Suppose money supply (M) = $500, real GDP (Y) = $1,000, and nominal GDP = $5,000. Calculate the value of velocity and the price level.

A) V = 2; P = 1
B) V = 4; P = 5
C) V = 10; P = 5
D) V = 10; P = 1

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