ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
The data below are from the economies of Ishgandar and Nonburmia.
Ishgandar | Nonburmia | |||||||
Year | Population |
GDPGDP Deflator |
Nominal GDPGDP |
Year | Population |
GDPGDP Deflator |
Nominal GDPGDP |
|
1 | 5 | 100 | $200 | 1 | 10 | 100 | $300 | |
2 | 5 | 125 | $375 | 2 | 10 | 110 | $440 |
(b) If Ishgandar and Nonburmia have the same velocity of money in Year 22, which economy must have the higher money supply in Year 22 ? Explain.
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