If nominal GDP is $12 trillion, the price level is 120, and the quantity of money is $4 trillion, what is the velocity of circulation?
A) 3
B) 30
C) 2.5
D) 25

Name: If nominal GDP is $12 trillion, the price level is 120, and the quantity of money is $4 trillion, what is the velocity of circulation? A) 3 B) 30 C) 2.5 D) 25
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Question

Quizplus · Accepted Answer

The velocity of circulation (V) is calculated using the formula V = (Nominal GDP) / (Quantity of Money). Here, V = $12 trillion / $4 trillion = 3.

If Nominal GDP Is $12 Trillion, the Price Level Is