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Money supply grows

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Reference no: EM133222898

Question 1.

What happens to nominal GDP if the money supply grows by 20% but velocity declines by 30%?

Question 2.

If velocity and aggregate output remain constant at $5 and $1,000 billion, respectively, what happens to the price level if the money supply declines from $400 billion to $300 billion?

Reference no: EM133222898

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