Question

question 46 (2 points)
listen
if price level is $8.3, real gdp is 45,500, and velocity of money is 2.9, then how much is the money supply? (hint: enter your answer in 2 decimal places)
your answer:
answer

Explanation:

Step1: Recall the quantity equation

The quantity equation is \( MV = PY \), where \( M \) is the money supply, \( V \) is the velocity of money, \( P \) is the price level, and \( Y \) is the real GDP. We need to solve for \( M \), so we can rearrange the formula to \( M=\frac{PY}{V} \).

Step2: Identify the given values

We are given that \( P = 8.3 \), \( Y = 45500 \), and \( V = 2.9 \).

Step3: Substitute the values into the formula

Substitute the values into \( M=\frac{PY}{V} \): \( M=\frac{8.3\times45500}{2.9} \).
First, calculate the numerator: \( 8.3\times45500 = 377650 \).
Then, divide by the denominator: \( M=\frac{377650}{2.9}\approx127134.48 \).

Answer:

127134.48