Using the quantity equation, if M_t = $1,000, P_t = 1.1, and V_t= 11, then real GDP is: A) $100,000 B) $0.01 C) $100 D) $909.19 E) $826.45

Name: Using the quantity equation, if M t = $1,000, P t = 1.1, and V t = 11, then real GDP is: A) $100,000 B) $0.01 C) $100 D) $909.19 E) $826.45
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Quizplus · Accepted Answer

The quantity equation is MV = PY. Given M = $1,000, P = 1.1, and V = 11, we solve for Y: (1,000)(11) = (1.1)Y, so Y = 10,000/1.1 = $100.

Using the Quantity Equation, If Mt = $1,000, Pt =

Using the Quantity Equation, If M_t = $1,000, P_t =