A, B, C, D, E Create an bond and to the from the scenariðPlease use the data for to This at real full employmentDescribe the outcomes.Monetary Policy Action Questionoutput is $70 billion.M = 10 billionV = 10P = 2Y = ? billiona.Please solve for Y. (This is the current level of real GDP)b. How much is current level of nominal GDP?C.How big is the gap in real terms? What type of gap is this economy experiencing?d. wihat type of monetary policy should the FRB adopt to close this gap? How much should the moneysupply change to close the gap? (other things being equal, hold V and P constant)Construct an idealized money market and show the change in money supply to close the gap. Next,construct an idealized AD/AS model showing the related change to close the gap.e.

Since we only answer upto 3 subparts, we will answer a, b and c only. Please resubmit the question…

Describe the outcomes. Monetary Policy Action Question output is $70 billion. M = 10 billion %3D V = 10 P = 2 Y = ? billion а. Please solve for Y. (This is the current level of real GDP) b. How much is current level of nominal GDP? с. How big is the gap in real terms? What type of gap is this economy experiencing? onow