Not sure if my answers are correct and confused on the last question 00O $6 trillionWhat is the GDP of this economy?$36 trillion2o $54 trillionO $72 trilliono $6 trillionO$3 trillion468REAL GDP (Trillions of dollars)O $15 trillionIf the velocity of money is 3, the money supply in this economy is $18 trillionO $12 trillionAdjust the previous graph to show the effects of a decrease in the money supply.Based on the new price level, what must the new money supply be in the long run if the velocity of money remains at 3?1012Becausemoney supply. This illustrates the, the percentage decrease in the price level isthe percentage decrease in the The equation of exchange is given by MXV = PX Q, where M is the money supply, V is the velocity of money, P is the economy's price level, andQis Real GDP.Suppose the following diagram shows the current aggregate demand (AD) and aggregate supply (AS) curves in a hypothetical economy.PRICE LEVELCO153002ASWhat is the GDP of this economy?AD₂468REAL GDP (Trillions of dollars)AD₁1012O****AD101AS(?)

Introduction Aggregate supply is the total quantity of output firms will produce and sell—in other…

0 0 $6 trillion What is the GDP of this economy? 2 $36 trillion o $54 trillion O $72 trillion 4 6 8 REAL GDP (Trillions of dollars) o $6 trillion $3 trillion 10 If the velocity of money is 3, the money supply in this economy is $18 trillion 12 Adjust the previous graph to show the effects of a decrease in the money supply. Based on the new price level, what must the new money supply be in the long run if the velocity of money remains at 3?

0 0 $6 trillion What is the GDP of this economy? 2 $36 trillion o $54 trillion O $72 trillion 4 6 8 REAL GDP (Trillions of dollars) o $6 trillion $3 trillion 10 If the velocity of money is 3, the money supply in this economy is $18 trillion 12 Adjust the previous graph to show the effects of a decrease in the money supply. Based on the new price level, what must the new money supply be in the long run if the velocity of money remains at 3?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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