If real output in an economy is 1,000 goods per year, the money supply is $300, and each dollar is spent an average of 3 times per year, then according to the quantity equation, the average price level is None of the above are correct. $1.11. $1.00. $0.90. $1.33. Suppose over some period of time the money supply tripled, velocity fell by half, and real GDP doubled. According to the quantity equation the price level is now 0.75 times its old value. None of the above are correct. 6 times its old value. 3 times its old value. 1.5 times its old value.
If real output in an economy is 1,000 goods per year, the money supply is $300, and each dollar is spent an average of 3 times per year, then according to the quantity equation, the average price level is None of the above are correct. $1.11. $1.00. $0.90. $1.33. Suppose over some period of time the money supply tripled, velocity fell by half, and real GDP doubled. According to the quantity equation the price level is now 0.75 times its old value. None of the above are correct. 6 times its old value. 3 times its old value. 1.5 times its old value.
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 10SQ
Related questions
Question
Please can you help for those 2 questions? Thank you very much already.
![If real output in an economy is 1,000 goods per year, the money supply is $300,
and each dollar is spent an average of 3 times per year, then according to the quantity equation,
the average price level is
79.
None of the above are correct.
$1.11.
$1.00.
$0.90.
$1.33.
Suppose over some period of time the money supply tripled, velocity fell by half,
and real GDP doubled. According to the quantity equation the price level is now
80.
0.75 times its old value.
None of the above are correct.
6 times its old value.
3 times its old value.
1.5 times its old value.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F08589e6d-707e-4251-a42a-b7e43cc72fa4%2Fe50474e6-406e-43fa-b6d7-0bca502e28bf%2F2f46isv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If real output in an economy is 1,000 goods per year, the money supply is $300,
and each dollar is spent an average of 3 times per year, then according to the quantity equation,
the average price level is
79.
None of the above are correct.
$1.11.
$1.00.
$0.90.
$1.33.
Suppose over some period of time the money supply tripled, velocity fell by half,
and real GDP doubled. According to the quantity equation the price level is now
80.
0.75 times its old value.
None of the above are correct.
6 times its old value.
3 times its old value.
1.5 times its old value.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![MACROECONOMICS FOR TODAY](https://www.bartleby.com/isbn_cover_images/9781337613057/9781337613057_smallCoverImage.gif)
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)
![Survey Of Economics](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![MACROECONOMICS FOR TODAY](https://www.bartleby.com/isbn_cover_images/9781337613057/9781337613057_smallCoverImage.gif)
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)
![Survey Of Economics](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)