Determine the level of nominal output

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Assume the money supply is $800, the velocity of money is 7, and the price level is $2. Using the quantity theory of money:

a. Determine the level of real output.

$.

b. Determine the level of nominal output.

$.

c. Assuming velocity remains constant, what will happen if the money supply rises 20 percent?

Nominal output would be $, and real output would be $.

Reference no: EM13818335

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