Suppose that this year’s money supply is $500 billion, nominal GDP is $10trillion, andreal GDP is $5 trillion. (10 marks)a. What is the price level? What is the velocity of money?

According to the quantity equation, if velocity and real GDP are constant and the Reserve Bank increases the money supply by 5%, then the price level:Group of answer choicesis also constantdecreases by 10%increases by 5%decreases by 5%

In the fictional country of Econland, the velocity of money remains stable. Real GDP increases by 2% per year, the money supply grows by 7% per year, and the nominal interest rate is 10%. What is the growth rate of nominal GDP?A.2%B.5%C.7%D.9%

Suppose an economy’s money supply grows by 5% and its real GDP grows at 1%. Assuming the velocity of money remains constant, what is the inflation rate?

In an economy, the price of bread is $10, the quantity produced is 2000 and the money supply is $5,000. Calculate the velocity of money.A.2.5B.4C.10D.1

Assume that the velocity does not change over time. If real GDP grows at 1% and money supply at 2%, what is the inflation rate? If your answer is 78.90%, write 78.90