Suppose the velocity of money is 10 transactions per year, the price level for 2015 is $6, and real GDP in 2015 is $4,000,000. If the central bank holds the money supply constant and output grows by 10%, what will nominal GDP be in 2016? Answer:

Suppose the velocity of money is 10 transactions per year, the price level for 2015 is $6, and real GDP in 2015 is $4,000,000. If the central bank holds the money supply constant and output grows by 10%, what will nominal GDP be in 2016? Answer:

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 5QP

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Question

Suppose the velocity of money is 10 transactions per year, the price level for 2015 is $6, and real GDP in 2015 is $4,000,000. If the
central bank holds the money supply constant and output grows by 10%, what will nominal GDP be in 2016?
Answer:

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