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Posted: June 15th, 2022
Use the equation of exchange, calculate the value of real output
Use the equation of alternate, calculate the value of real output (Q), or real transactions (T) in an economic system the place M=$200 billion, V=2.four and P=1.2?If the value of full employment output (Q) or real transactions (T) in the economic system above is $451 billion, calculate the change in the cash provide (M) wanted by the Fed to convey this economic system to full employment output if V=2.5 throughout the financial booms. Assume that there isn’t any improve in the value stage when the economic system reaches full employment.
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