If the stock of money in a given economy is 350,000; long run real output equals 420,000units while the fraction of National Income held by the public is 2/3, what will be the long run price level in the economy?
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Expert's answer
2019-06-06T08:55:56-0400
M = 350,000, Q = 420,000 units.
If the fraction of National Income held by the public is 2/3, then M = 2/3PQ, so:
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