Question

Calculate what happens to nominal GDP If velocity remains constant at 5 and the money supply increases from $250 billion to $375 billion Originally, nominal GDP is S trillion. (Round your response to two decimal places.)

Answer 1

o They are asking what happens to nominal upp velocity remains constant money supply increases froom $250 billion to 375 billion. solution originally naminal upp is velocity & money supply before increases 5 X 250 billion 1,100 billion 1.25 trillion. But after money supply increases, nominal uop_15 a velocity & money supply after increeses 5x 375 billion 1875 billion î Î 1.875 trillion Î Therefore, nominal coop is increased by = 0.625 tillion o 11,876-1.25).

summar 0 summary originally, nominal crop iş - $ 1.25 trillion, after money supply increases, nominal app is $1.875 trillion it sound off to 2 decimal places, Answer iş =)' $ 1.88 trillian, @ Due to money supply increases, nominal upp is increased by $0.625 trilliou. if you sound off to 2 decimals, - $ 0.63 trillion.