Fisheria is a country in which the quantity theory of money operates. The country has a constant population, cap stock, and technology. In 2008, real GDP was $300 million, the quantity of money was $60, and the velocity of cir of money was 10. In 2009, the price level rose by 20 percent.
a) What was the price level in 2008? (The price level is measured by the GDP deflator, which is 100 in 2000. So level from the equation of exchange needs to be multiplied by 100 to convert it to the GDP deflator.)
b) What was real GDP in 2009?
c) What was the velocity of circulation in 2009?
d) What was the quantity of money in 2009?

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The Answer of Fisheria is a country in which the quantity theory of money operates. The country has a constant population, cap stock, and technology. In 2008, real GDP was $300 million, the quantity of money was $60, and the velocity of cir of money was 10. In 2009, the price level rose by 20 percent.
a) What was the price level in 2008? (The price level is measured by the GDP deflator, which is 100 in 2000. So level from the equation of exchange needs to be multiplied by 100 to convert it to the GDP deflator.)
b) What was real GDP in 2009?
c) What was the velocity of circulation in 2009?
d) What was the quantity of money in 2009?

Fisheria Is a Country in Which the Quantity Theory of Money