What will happen to nominal GDP and the price level

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Suppose that the money supply is $750, nominal GDP is 2500, and real GDP is 1250. What is the velocity of money and what is the price level? Suppose that the velocity is constant, and the economy’s output of goods and services rises by 5% each year. What will happen to nominal GDP and the price level if the Fed keeps the money supply constant? What money supply should the Fed set if it wants to keep the price level stable? What money supply should the Fed set if it wants inflation of 10%?

Reference no: EM13981114

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