Respuesta :
Answer:
$0.67 and $0.73
Explanation:
The computation of the price levels for the year 2016 and 2017 is shown below:
For the year 2016
= (Money supply × velocity) ÷ (Real GDP)
= (2,000 × 5) ÷ (15,000)
= $0.67
And, for the year 2017, it would be
= (Money supply × velocity) ÷ (Real GDP)
= (2,200 × 5) ÷ (15,000)
= $0.73
We simply multiplied the money supply with the velocity and then divided it by the real GDP so that the price level could come
The price levels for 2016 is 0.67 and the price levels in 2017 is 0.73.
What are the price levels?
The quantity theory of money is an economy theory that arose in the 16th century among monetary economists. The quantity theory of money states that the price of goods and services in an economy is directly proportional to the money supply.
Quantity theory of money = price x real output = money supply x velocity
Price levels = (money supply x velocity) / real output
Price levels in 2016 = (2000 x 5) / 15,000 = 0.67
Price levels in 2017 = (2200 x 5) / 15,000 = 0.73
To learn more about the quantity theory of money, please check: https://brainly.com/question/26370040
