Marketplace for engagement rings is in equilibrium

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Q. Assume that the marketplace for engagement rings is in equilibrium. After that political unrest in South Africa shuts down the diamond mines there. South Africa is the world's primary supplier of diamonds. Illustrate what will happen?

Q. If velocity is 6 the cost level is 1.2 also real output is 1,100 billion, illustrate what is the money supply? If the money supply is $300 billion the cost level is 1.3 also real output is 1,300 billion, illustrate what is velocity?

Reference no: EM1321512

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