### Find out velocity of money based on m1 money supply find

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##### Reference no: EM13451653

Assume that a country estimates its M1 money supply at \$20 million. A broader measure of the money supply, M2, is \$50 million. The country's gross domestic product is \$100 million. Production or real output for

the country is 500,000 units or products.

a. Determine the velocity of money based on the M1 money supply.

b. Determine the velocity of money based on the M2 money supply.

c. Determine the average price for the real output.

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