Question

Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $360, the price of a pie was $9.00, and the economy produced 800 pies.

Answer 1

The velocity of money in 2019 based on the information will be 20 and the nominal GDP is $7200.

From the complete information, the velocity will be calculated thus:

= Price level × Quantity / Quantity of money

= (9 × 800) / 360.

= 20

The nominal GDP will be:

= Price level × Quantity

= 9 × $800

= $7200

Read related link on:

https://brainly.com/question/25302413