retend that you ascribe to the Classical theory of economics. a) Using the equation of exchange, if the money supply is $8 trillion, the price level is 4, and the level of output (real GDP) is $15 trillion, then the velocity of money is equal to? b) If you double the money supply, what is the most likely long-run effect on the price level and rea GDP? c) What do classical economists believe about the government, central bank, fiscal policy, and monetary policy? What reasons do they provide for their thinking?

retend that you ascribe to the Classical theory of economics. a) Using the equation of exchange, if the money supply is $8 trillion, the price level is 4, and the level of output (real GDP) is $15 trillion, then the velocity of money is equal to? b) If you double the money supply, what is the most likely long-run effect on the price level and rea GDP? c) What do classical economists believe about the government, central bank, fiscal policy, and monetary policy? What reasons do they provide for their thinking?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section16.A: Policy Disputes Using The Self Correcting Aggregate Demand And Supply Model

Problem 3SQP

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