If real GDP is 21 trillion, the price level is currently 2.7 and the money supply is 11 trillion, then what is the value of velocity? (Give your answer rounded to two decimal places)
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Step 1: The equation of exchange is given by: $$MV = PQ$$ where: * $M$ is the money supply * $V$ is the velocity of money * $P$ is the price level * $Q$ is the real GDP Show more…
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