Reference no: EM133421050

Question

Velocity and the quantity equation Consider a simple economy that produces only streaming devices. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2021, the money supply was $400, the price of a streaming device was $12.50, and the economy produced 800 streaming devices. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Year Quantity of Money Velocity of Money Price Level Quantity of Output Nominal GDP (Dollars) (Dollars) (Streaming devices) (Dollars) 2021 400 12.50 800 2022 408 25 800 The money supply grew at a rate of from 2021 to 2022. Since streaming device output did not change from 2021 to 2022 and the velocity of money, the change in the money supply was reflected in changes in the price level. The inflation rate from 2021 to 2022 was.