Question: 13. In Quantecon described in problem 12, in year 3, the quantity of money falls to one fifth of its level in a. What is

13. In Quantecon described in problem 12, in year 3, the quantity of money falls to one fifth of its level in a. What is the quantity of money in year 3? b. What is the price level in year 3? c. What is the level of real GDP in year 3? d. What is the velocity of circulation in year 3? e. If it takes more than one year for the full quantity theory effect to occur, what do you predict happens to real GDP in Quantecon in year 3? Why? year 2.

13. In Quantecon described in problem 12, in year 3, the quantity of money falls to one fifth of its level in year 2. a. What is the quantity of money in year 3? b. What is the price level in year 3? c. What is the level of real GDP in year 3? d. What is the velocity of circulation in year 3? e. If it takes more than one year for the full quantity theory effect to occur, what do you predict happens to real GDP in Quantecon in year 3? Why

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