Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2012, the money supply was $280, the price of a pie was $7.00, and the economy produced 600 pies. Fill in the missing values in the following table, rounding to the nearest cent when necessary. Year Quantity of Money Velocity of Money Price Level Quantity of Output Nominal GDP (Dollars) (Dollars) (Pies) (Dollars) 2012 280 7.00 2013 294 15 600 600 The money supply grew at a rate of from 2012 to 2013. Since pie output did not change from 2012 to 2013 and the velocity of money, the change in the money supply was reflected in changes in the price level. The inflation rate from 2012 to 2013 was

Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2012, the money supply was $280, the price of a pie was $7.00, and the economy produced 600 pies. Fill in the missing values in the following table, rounding to the nearest cent when necessary. Year Quantity of Money Velocity of Money Price Level Quantity of Output Nominal GDP (Dollars) (Dollars) (Pies) (Dollars) 2012 280 7.00 2013 294 15 600 600 The money supply grew at a rate of from 2012 to 2013. Since pie output did not change from 2012 to 2013 and the velocity of money, the change in the money supply was reflected in changes in the price level. The inflation rate from 2012 to 2013 was

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider a simple economy that produces
only pies. The following table contains
information on the economy's money supply,
velocity of money, price level, and output. For
example, in 2012, the money supply was $280,
the price of a pie was $7.00, and the economy
produced 600 pies.
Fill in the missing values in the following table,
rounding to the nearest cent when necessary.
Year Quantity of Money Velocity of Money Price Level Quantity of Output Nominal GDP
(Dollars) (Dollars)
(Pies)
(Dollars)
2012 280
2013 294
15
7.00
600
600
The money supply grew at a rate of
from 2012 to 2013. Since pie output did not
change from 2012 to 2013 and the velocity of
money, the change in the money supply was
reflected in changes in the price level. The
inflation rate from 2012 to 2013 was

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