Assume the money supply is $1,000,the velocity of money is 12,and the price level is $4.Using the quantity theory of money:
(a)Determine the level of real output.
(b)Determine the level of nominal output.
(c)Assuming velocity remains constant and that the economy is at full-employment equilibrium,what will happen if the money supply rises by 10%?

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The Answer of Assume the money supply is $1,000,the velocity of money is 12,and the price level is $4.Using the quantity theory of money:
(a)Determine the level of real output.
(b)Determine the level of nominal output.
(c)Assuming velocity remains constant and that the economy is at full-employment equilibrium,what will happen if the money supply rises by 10%?

Assume the Money Supply Is $1,000,the Velocity of Money Is