The money supply in Muckland is $100 billion. Nominal GDP is $800 billion and real GDP is $400 billion. What are the price level and velocity in Muckland?
A) The price level and velocity are both 8.
B) The price level is 2 and velocity is 8.
C) The price level and velocity are both 4.
D) The price level is 4 and velocity is 8.
Correct Answer:
Verified
Q141: Which of the following is correct?
A)The classical
Q150: If P = 4 and Y =
Q154: Velocity is computed as
A)(PY)/M.
B)(PM)/Y.
C)(YM)/P.
D)(YM)/V.
Q155: If M = 4,000, P = 1.5,
Q156: According to the assumptions of the quantity
Q156: If M = 3,000, P = 2,
Q157: If P = 2 and Y =
Q158: If velocity = 5, the price level
Q162: The velocity of money is
A)the rate at
Q175: According to the assumptions of the quantity
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