12. Quantecon is a country in which the quantity theory of money operates. The country has a constant population, capital stock, and technolo- gy. In year 1, real GDP was $400 million, the price level was 200, and the velocity of circula- tion was 20. In year 2, the quantity of money was 20 percent higher than in year 1. What was a. The quantity of money in year 1? b. The quantity of money in year 2? c. The price level in year 2? d. The level of real GDP in year 2? c. The velocity of circulation in year 2?

12. Quantecon is a country in which the quantity theory of money operates. The country has a constant population, capital stock, and technolo gy. In year 1, real GDP was $400 million, the price level was 200, and the velocity of circula- tion was 20. In year 2, the quantity of money was 20 percent higher than in year 1. What was a. The quantity of money in year 1? b. The quantity of money in year 2? c. The price level in year 2. d. The level of real GDP in year 2? e. The velocity of circulation in year 2