Suppose the money supply is $300, the price level is $4, and real GDP is $1,500.What is the nominal value of output?
A) $1,200
B) $4,500
C) $6,000
D) $180,000

Name: Suppose the money supply is $300, the price level is $4, and real GDP is $1,500.What is the nominal value of output? A) $1,200 B) $4,500 C) $6,000 D) $180,000
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Question

Suppose the money supply is $300, the price level is $4, and real GDP is $1,500.What is the nominal value of output?  
A) $1,200 
B) $4,500 
C) $6,000 
D) $180,000

Quizplus · Accepted Answer

The nominal value of output is calculated by multiplying the price level by real GDP: $4 * $1,500 = $6,000.

Suppose the Money Supply Is $300, the Price Level Is