If the total output is 300, the velocity of money is 5, and the money supply is 600, then the price level is
A) 10.0.
B) 2.0.
C) 2.50.
D) 5.0.

Name: If the total output is 300, the velocity of money is 5, and the money supply is 600, then the price level is A) 10.0. B) 2.0. C) 2.50. D) 5.0.
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Question

Quizplus · Accepted Answer

The price level is calculated by dividing the total output by the velocity of money and multiplying by the money supply. In this case, the price level is 300 / 5 * 600 = 10.0.

If the Total Output Is 300, the Velocity of Money