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0 ng.cengage.com ECN-351 Class Resources Student Portal I Main CENGAGE I MINDTAP Topic 7 Assignment Back to Assignment Attempts MindTap - Cengage Learning Q Search this course Average / 4 3. Ch. 22 Problems and Applications QI Suppose that this year's money supply is $400 billion, nominal GDP is $12 trillion, and real GDP is $4 trillion. A-Z The price level is , and the velocity of money is Suppose that velocity is constant and the economy's output of goods and services rises by 5 percent each year. Use this information to answer the questions that follow. If the Fed keeps the money supply constant, the price level will , and nominal GDP will True or False: If the Fed wants to keep the price level stable instead, it should increase the money supply by 5% next year. o True O False If the Fed wants an inflation rate of 11 percent instead, it should be rewritten as the following percentage change formula: the money supply by (Hint: The quantity equation can (Percentage Change in M) + (Percentage Change in = (Percentage Change in P) + (Percentage Change in D.) Grade It Now Save & Continue Continue without saving