Question: Quantecon is a country in which the quantity theory of money operates. In year 1, the economy is at full employment and real GDP is

Quantecon is a country in which the quantity theory of money operates. In year 1, the economy is at full employment and real GDP is $400 million, the price level is 200, and the velocity of circulation is 20. In year 2, the quantity of money increases by 20 percent. Calculate the quantity of money, the price level, real GDP, and the velocity of circulation in year 2.

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