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WINSTONCH [101]
3 years ago
11

g If the velocity of money triples, while real GDP and money supply remain unchanged, in the long run, the price level:

Business
1 answer:
MrRissso [65]3 years ago
3 0

Answer:

if velocity triples, then in the long run, price would triple

Explanation:

According to the quantity theory of money

velocity x money supply = output x price

if velocity triples, then in the long run, price would triple

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At a price of $200, a cell phone company manufactures 100000 phones. At a price of $300, the company produces 300000 phones. Wha
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Answer:

2.5

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E=\frac{\Delta S}{\Delta P}=\frac{100\%}{40\%}=2.5

The price elasticity of supply is 2.5.

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