Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2018, the money supply was $280, the price of a cell phone was $7.00, and the economy produced 600 cell phones.Fill in the missing values in the following table, selecting the answers closest to the values you calculate.YearQuantity of MoneyVelocity of MoneyPrice LevelQuantity of OutputNominal GDP(Dollars)(Dollars)(Cell phones)(Dollars)2018280 7.00600 201929415 600 The money supply grew at a rate of_____ from 2018 to 2019. Since cell phone output did not change from 2018 to 2019 and the velocity of money _____ , the change in the money supply was reflected _____ in changes in the price level. The inflation rate from 2018 to 2019 was ______ .

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Answered: Consider a simple economy that produces…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 5WNG

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Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2018, the money supply was $280, the price of a cell phone was $7.00, and the economy produced 600 cell phones.

Fill in the missing values in the following table, selecting the answers closest to the values you calculate.

Year	Quantity of Money	Velocity of Money	Price Level	Quantity of Output
(Dollars)	(Dollars)	(Cell phones)	(Dollars)
2018	280		7.00	600
2019	294	15		600

The money supply grew at a rate of_____ from 2018 to 2019. Since cell phone output did not change from 2018 to 2019 and the velocity of money _____ , the change in the money supply was reflected _____ in changes in the price level. The inflation rate from 2018 to 2019 was ______ .

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