If real GDP is $10 trillion, the price level is 120, and the quantity of money is $4 trillion, what is the velocity of circulation?
A) 3
B) 2.5
C) 25
D) 30

Name: If real GDP is $10 trillion, the price level is 120, and the quantity of money is $4 trillion, what is the velocity of circulation? A) 3 B) 2.5 C) 25 D) 30
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Question

Quizplus · Accepted Answer

The velocity of circulation (V) is calculated using the formula V = (Price Level * Real GDP) / Quantity of Money. Substituting the given values: V = (120 * 10) / 4 = 30.

If Real GDP Is $10 Trillion, the Price Level Is