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Business, 30.05.2021 19:30 Daveandemily17

If initially the money supply is $2 trillion, velocity is 5, the price level is 2 and real GDP is $5 trillion, a fall in the money supply to $1 trillion . decreases the price level to 1 and decreases velocity to 2.5. decreases the price level to 1. causes velocity to rise to 10. reduces real GDP to $2.5 trillion.

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If initially the money supply is $2 trillion, velocity is 5, the price level is 2 and real GDP is $5...
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