If the velocity of money is about 1.8 and the money stock is about $8 trillion, what is the real GDP?
A)$0.8 trillion
B)$4.4 trillion
C)$14.2 trillion
D)We cannot compute real GDP from the data; we can only compute nominal GDP.

Question

Quizplus · Accepted Answer

The velocity of money formula is Nominal GDP = Money Stock x Velocity of Money. The question provides the money stock and velocity but does not specify the price level or differentiate between nominal and real GDP, making it impossible to directly calculate real GDP from the given information.

If the Velocity of Money Is About 1