in the country of Juventus, the money supply is equal to $52 blionj the welocity of orcuation is 5, and real GDPis SI00 bilion) = what is the price level in Juventus, and what is the valur of ts nomanal GDPRound your price level to 2 decemal places Pce levet Nominal GDP money supply increases by 20 percent, what will be the new values of the price level and nominal GDP, assuming that Vand real GDP remain constant? Round your price level to 2 decinplars Price levet Nominal GDP What does this suggest about the connection between money supply and price level? The relationship between money supply and price level in this case is Cickto select)

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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In the country of Juventus, the money supply is equal to $52 (bilion), the velocity of circulation is 5, and real GDP is $100 (bilion)
a. What is the price level in Juventus, and what is the valur of its nominal GDP? Round your price level to 2 decimal places
Price level
Nominal GDP
b. If money supply increases by 20 percent, what will be the new values of the price level and nominal GDP, assuming that Vand real
GDP remain constant? Round your price level to 2 decmal olaces
Price levet
Nominal GDP
c What does this suggest about the connection between money supply atnd price level?
The relationship between money supply and price level in this case is Cick to select)
Transcribed Image Text:In the country of Juventus, the money supply is equal to $52 (bilion), the velocity of circulation is 5, and real GDP is $100 (bilion) a. What is the price level in Juventus, and what is the valur of its nominal GDP? Round your price level to 2 decimal places Price level Nominal GDP b. If money supply increases by 20 percent, what will be the new values of the price level and nominal GDP, assuming that Vand real GDP remain constant? Round your price level to 2 decmal olaces Price levet Nominal GDP c What does this suggest about the connection between money supply atnd price level? The relationship between money supply and price level in this case is Cick to select)
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