If nominal GDP is $12 billion, the price level is 120, and the quantity of money is $4 billion, what is the velocity of circulation?

Name: If nominal GDP is $12 billion, the price level is 120, and the quantity of money is $4 billion, what is the velocity of circulation?
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Quizplus · Accepted Answer

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

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