The money supply in Goldova is $100 billion. Nominal GDP is $400 billion, and real GDP is $200 billion. What is the price level in Goldova?

Question

Quizplus · Accepted Answer

The price level in Goldova can be calculated using the formula for the GDP deflator: Price Level = (Nominal GDP / Real GDP) * 100. Substituting the given values, we get Price Level = ($400 billion / $200 billion) * 100 = 2.

The Money Supply in Goldova Is $100 Billion