Calculate the equilibrium price level

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Suppose that initially the money supply is 2 trillion the price level equals 2 the real gdp is 4 trillion in base year dollars and income velocity of money is 4 . Then suppose that the quantity of money in circulation remain fixed but the income velocity of money doubles.

If real GDP remains at its long-run potential level, calculate the equilibrium price level

Reference no: EM13816205

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