Determine the level of nominal output

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Reference no: EM13818335

Assume the money supply is $800, the velocity of money is 7, and the price level is $2. Using the quantity theory of money:

a. Determine the level of real output.

b. Determine the level of nominal output.

c. Assuming velocity remains constant, what will happen if the money supply rises 20 percent?

Nominal output would be $, and real output would be $.

Reference no: EM13818335

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