Calculate the price level after all these changes taken

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Reference no: EM132184899

Suppose that initially the money supply is ?$2.0?trillion, the price level equals 2.00?, the real GDP is ?$4.0 trillion in? base-year dollars and income velocity is 4. Suppose that the Fed cuts the money supply in half but the income velocity of money doubles.

Calculate the price level after all these changes have taken place.

Reference no: EM132184899

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