how to calculate the equilibrium price..... Figure 30-3. On the graph, MS represents the money supply and MD represents money demand. The usualquantities are measured along the axes.0.5✓0.33MS₁3.06.0c. 9.0@1.5MS₂210,000 15,000Vertical Axis:MDvalue of money39. Refer to Figure 30-3. Suppose the relevant money-supply curve as the one labeled MS; also suppose theeconomy's real GDP is 30,000 for the year. If the money market is in equilibrium, then the velocity of money isapproximately2x30000-=6.10000V= P x YM

The money market is a market for financial assets. It includes interest rate and money supply…

Answered: 39. Refer to Figure 30-3. Suppose the…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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how to calculate the equilibrium price.....

Figure 30-3. On the graph, MS represents the money supply and MD represents money demand. The usual
quantities are measured along the axes.
0.5
✓
0.33
MS₁
3.0
6.0
c. 9.0
@1.5
MS₂
2
10,000 15,000
Vertical Axis:
MD
value of money
39. Refer to Figure 30-3. Suppose the relevant money-supply curve as the one labeled MS; also suppose the
economy's real GDP is 30,000 for the year. If the money market is in equilibrium, then the velocity of money is
approximately
2x30000
-=6.
10000
V= P x Y
M

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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