Economic

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Economic

Consider a simple economy that produces only loaves of bread. The table contains
information on the economy's output, money supply, velocity, and price level. For
example, in 2009, the money supply was $200, the price of a loaf of bread was $5, and
the economy produced 400 loaves of bread. Using the information in the table, the
price level in 2010 was $ . [Use 2 decimal places for your answer]
2009
2010
Quantity of Money
$200
$216
10
Velocity of Money
Price Level
$5.00
400
400
Quantity of Output
Transcribed Image Text:Consider a simple economy that produces only loaves of bread. The table contains information on the economy's output, money supply, velocity, and price level. For example, in 2009, the money supply was $200, the price of a loaf of bread was $5, and the economy produced 400 loaves of bread. Using the information in the table, the price level in 2010 was $ . [Use 2 decimal places for your answer] 2009 2010 Quantity of Money $200 $216 10 Velocity of Money Price Level $5.00 400 400 Quantity of Output
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