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In 2010, the money supply, M1, was $1,832 billion.
Nominal GDP was $14,660 billion.
a. What was the velocity of money measured using M1?
b. In 2010, M2 was $8,816 billion. What was the velocity of money measured using M2?
c. Why are these measures of velocity different?
The ability to create new products and process and to organize production to make goods and sevices available.
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