Suppose that this years money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion.a. What is the price level? What is the velocity of money?b. Suppose that velocity is constant and the economys output of goods and services risesby 5 percent each year. What will happen to nominal GDP and the price level next year if the Fed keeps the money supply constant?c. What money supply should the Fed set next year if it wants to keep the price level stable?d. What money supply should the Fed set next year if it wants inflation of 10 percent
Money supply
This is a sample question
Need help with a similar assignment?
Place an order at Study Pirate
Attach all custom instructions.
Make Payment. (The total price is based on number of pages, academic level and deadline)
We’ll assign the paper to one of writers and send it back once complete.