Answered: 25.) If the price level, P, is 16,…

25.) If the price level, P, is 16, money demand equal to money supply is $1,000, and the desired cash balance ratio, little k, is .25, what is real GDP? 4000 2000 250 15.625

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

125.) If the price level, P, is 16, money demand equal to money supply is $1,000, and the desired cash balance ratio, little k, is .25, what is real GDP?

		4000
		2000
		250
		15.625

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