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Friedmania Is a Country in Which the Quantity Theory of Money

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Essay

Friedmania is a country in which the quantity theory of money operates. The country has a constant population, capital stock, and technology so real GDP does not change. In 2014, real GDP was $500 million, the price level, measured by the GDP deflator, was 150 and the velocity of circulation of money was 10. (Because the price level is measured by the GDP deflator, it must be divided by 100 before it is used in the equation of exchange.) In 2015, the quantity of money increased by 20 percent.
a) What was the quantity of money in 2014?
b) What was the velocity of circulation in 2015?
c) What was the price level in 2015?


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Low Dose

Refers to a small amount of a substance or medication administered or applied, typically less than the standard or therapeutic amount.

High Dose

High dose refers to the administration or use of a substantial amount of a substance or medication, typically higher than the standard or recommended level.

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Sporting equipment consisting of a handle and an open hoop with a network of strings, used to hit a tennis ball in the game of tennis.

Previous Design

A design or layout that was used or implemented before the current one, often referred to in revisions or updates.

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