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Quantecon Is a Country in Which the Quantity Theory of Money

question 34

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Quantecon is a country in which the quantity theory of money operates. The country has a constant population, capital stock, and technology. In year 1, real GDP was $400 million, the price level was 200, and the velocity of circulation was 20. In year 2 the quantity of money was 20 percent higher than in year 1.
The quantity of money in year 1 was ________.
The quantity of money in year 2 was ________.
The price level in year 2 is ________.


Definitions:

Preliminary Controls

Initial measures or procedures put in place to monitor and regulate processes or operations.

Objectives

Specific, measurable goals that are designed to achieve the overall aim of an individual or organization.

After-Action Review

A systematic assessment of lessons learned and results accomplished in a completed project.

Structured Review

A formal, organized assessment process used to evaluate performance, systems, or processes, typically based on predetermined criteria.

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