Analyzing the impact of fiscal policies

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Find the velocity given that the market is in equilibrium. MD1 is the relevant curve and it is given that the real GDP is 30,000.

I know you find velocity with the equation V= PY/M...P being the price level, Y being real output, and M being the money supply. The money supply is at $5000 on the graph. What do you use for P and Y?

Reference no: EM1311590

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