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In a Small Economy, the Money Supply Is $400,000, and the Velocity

Question 140

Multiple Choice

In a small economy, the money supply is $400,000, and the velocity of money is 3. The current average price level in the economy is 1. What is the level of real GDP in this economy?


A) $1.2 million
B) $1.6 million
C) $400,000
D) $133,333

Correct Answer:

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