In the country of Mycenae,the money supply equals 60 million drachmas,real GDP is 400 million drachmas,the price level is 1.2 and the velocity of money is 8.
a)What is the value of its nominal GDP?
b)If,in the next year,V remains constant and real GDP increases to 450 million drachmas,what must happen to the money supply in order to keep prices stable?

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The Answer of In the country of Mycenae,the money supply equals 60 million drachmas,real GDP is 400 million drachmas,the price level is 1.2 and the velocity of money is 8.
a)What is the value of its nominal GDP?
b)If,in the next year,V remains constant and real GDP increases to 450 million drachmas,what must happen to the money supply in order to keep prices stable?

In the Country of Mycenae,the Money Supply Equals 60 Million