Consider a simple economy that produces only pies. The following table contains information on the economy's...

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Consider a simple economy that produces only pies. The following table contains information on the economys money supply, ve

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Answer 1

Answer #1

YEAR	QUANTITY MONEY	VELOCITY	PRICE LEVEL	QUANTITY OUTPUT	NGDP
2018	200	10	5	400	2000
2019	202	10	5.05	400	2020

As, Q M*V = P*Q M = NGDP

Blanks-

1) 202-200/200*100 = 1%

2) remains the same

3) entirely

4) 1%

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Answer 2

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