Consider a simple economy that produces only cell phones. The following table contains information on the...
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Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2012, the money supply was $360, the price of a cell phone was $4.50, and the economy produced 800 cell phones. Fill in the missing values in the folowing table, rounding to the nearest cent when necessary. Quantity of Money Price Level Quantity of Output Nominal GDP Velocity of Money (Dollars) (Cell phones) Year (Dollars) (Dollars) 2012 360 4.50 800 2013 378 10 800 The money supply grew at a rate of from 2012 to 2013. Since cell phone output did not change from 2012 to 2013 and the velocity of , the change in the money supply was reflected In changes in the price level. The inflation rate from money 2012 to 2013 was Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2012, the money supply was $360, the price of a cell phone was $4.50, and the economy produced 800 cell phones. Fill in the missing values in the folowing table, rounding to the nearest cent when necessary. Quantity of Money Price Level Quantity of Output Nominal GDP Velocity of Money (Dollars) (Cell phones) Year (Dollars) (Dollars) 2012 360 4.50 800 2013 378 10 800 The money supply grew at a rate of from 2012 to 2013. Since cell phone output did not change from 2012 to 2013 and the velocity of , the change in the money supply was reflected In changes in the price level. The inflation rate from money 2012 to 2013 was
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