Consider a simple economy that produces only pies. The following table contains information on he economy's money supply, velocity of money, price level, and output. For example, in 2017, the noney supply was $280, the price of a pie was $8.00, and the economy produced 700 pies. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money |(Dollars) Price Level Quantity of Output |(Pies) 700 Nominal GDP Year 2017 Velocity of Money (Dollars) 8.00 (Dollars) 280 2018 294 20 700 The money supply grew at a rate of change from 2017 to 2018 and the velocity of money noney supply was reflected 2017 to 2018 was from 2017 to 2018. Since pie output did not , the change in the in changes in the price level. The inflation rate from

Consider a simple economy that produces only pies. The following table contains information on he economy's money supply, velocity of money, price level, and output. For example, in 2017, the noney supply was $280, the price of a pie was $8.00, and the economy produced 700 pies. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money |(Dollars) Price Level Quantity of Output |(Pies) 700 Nominal GDP Year 2017 Velocity of Money (Dollars) 8.00 (Dollars) 280 2018 294 20 700 The money supply grew at a rate of change from 2017 to 2018 and the velocity of money noney supply was reflected 2017 to 2018 was from 2017 to 2018. Since pie output did not , the change in the in changes in the price level. The inflation rate from

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. Velocity and the quantity equation Consider a simple economy that produces only pens. 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 $360, the price of a pen was $4.50, and the economy produced 800 pens. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money Price Level Quantity of Output Nominal GDP Year (Dollars) Velocity of Money (Dollars) (Pens) (Dollars) 2018 360 4.50 800 2019 378 10 800 The money supply grew at a rate of from 2018 to 2019. Since pen 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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