If an economy produces 3,000 units of output when the money supply is $500 and the velocity of money is 9, what is the price level?
A) $1.50
B) $2
C) $4.50
D) $9

Name: If an economy produces 3,000 units of output when the money supply is $500 and the velocity of money is 9, what is the price level? A) $1.50 B) $2 C) $4.50 D) $9
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Question

Quizplus · Accepted Answer

The price level is calculated as (Money supply * Velocity of money) / Output. In this case, the price level is ($500 * 9) / 3,000 = $1.50.

If an Economy Produces 3,000 Units of Output When the Money