QUESTION 16 Consider the Quantity Theory of Money (M1 XV - YxP). In year 2020 the price level is P =1 (GOP deflator is 1

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Question 16 Consider The Quantity Theory Of Money M1 Xv Yxp In Year 2020 The Price Level Is P 1 Gop Deflator Is 1 1 (31.41 KiB) Viewed 114 times

QUESTION 16 Consider the Quantity Theory of Money (M1 XV - YxP). In year 2020 the price level is P =1 (GOP deflator is 100), and real GDP is Y-$20 trillion. In year 2020, MT $5 trilion a in 2020: What does is the velocity of money (V)? b. It real GDP in 2030 is Y $30 trillion (as measured in 2020 prices); Mt has increased to $20 trition and assuming Vis unchanged from part a What will be the price level P in 20307 c. Holding everything else constant in the long-run IV increased due to changes in technology What would we expect to happen to P7 For the toolbar, press ALT+F10 (PC) or ALT EN F10 (Mac). BIVS Paragraph Arial 10pt 2 1. X Q x X, 32 TT ✓ 11 9 Q B BA B B B E H [+ . P O WC