If real GDP equals 5,000, nominal GDP equals 10,000, and the price level equals 2, then what is velocity if the money stock equals 2,000?

Name: If real GDP equals 5,000, nominal GDP equals 10,000, and the price level equals 2, then what is velocity if the money stock equals 2,000?
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Question

Quizplus · Accepted Answer

Velocity (V) is calculated using the formula V = (Nominal GDP) / (Money Stock). Here, Nominal GDP is 10,000 and the Money Stock is 2,000, so V = 10,000 / 2,000 = 5.

If Real GDP Equals 5,000, Nominal GDP Equals 10,000, and the Price