Suppose the velocity of money is 10 transactions per year, the price level for 2015 is $6, and real GDP in 2015 is $4,000,000. If the central bank holds the money supply constant and output grows by 10%, what will nominal GDP be in 2016? Answer:
Suppose the velocity of money is 10 transactions per year, the price level for 2015 is $6, and real GDP in 2015 is $4,000,000. If the central bank holds the money supply constant and output grows by 10%, what will nominal GDP be in 2016? Answer:
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter14: Money And The Economy
Section: Chapter Questions
Problem 5QP
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![Suppose the velocity of money is 10 transactions per year, the price level for 2015 is $6, and real GDP in 2015 is $4,000,000. If the
central bank holds the money supply constant and output grows by 10%, what will nominal GDP be in 2016?
Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab74d7a-2aa2-41fb-ad77-66c3f7c23f53%2Fb7c02c4d-3766-4330-8acd-2f00e7bf7752%2Frcuhky_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose the velocity of money is 10 transactions per year, the price level for 2015 is $6, and real GDP in 2015 is $4,000,000. If the
central bank holds the money supply constant and output grows by 10%, what will nominal GDP be in 2016?
Answer:
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