3. Let’s consider a hypothetical economy where this year’s money supply is Tk.400, nominal GDP is Tk. 80000 and real GDP
Posted: Tue Apr 26, 2022 9:56 am
3. Let’s consider a hypothetical economy where this year’s money supply is Tk.400, nominal GDP is
Tk. 80000 and real GDP is Tk. 5000.
a) What does the quantity theory of money say?
b) Calculate the price level.
c) Calculate the velocity of money.
d) Suppose the central bank changes the money supply so that the new money supply is Tk. 500, calculate the new price level.
Tk. 80000 and real GDP is Tk. 5000.
a) What does the quantity theory of money say?
b) Calculate the price level.
c) Calculate the velocity of money.
d) Suppose the central bank changes the money supply so that the new money supply is Tk. 500, calculate the new price level.