Real GDP is $2,560 billion,the quantity of money $800 billion,and the velocity of circulation is 4.The price level is

Question

Quizplus · Accepted Answer

The formula for the price level is given by the equation of exchange: MV = PY, where M is the money supply, V is the velocity of circulation, P is the price level, and Y is the real GDP. Plugging in the values: $800 billion * 4 = P * $2,560 billion. Solving for P gives P = 125.

Real GDP Is $2,560 Billion,the Quantity of Money $800 Billion,and