Determine the level of real output.

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Assume the money supply is $700 the velocity of money is 4 and the price level is $4. Using the qu Show more Assume the money supply is $700 the velocity of money is 4 and the price level is $4. Using the quantity theory of money: a. Determine the level of real output. $_______ b. Determine the level of nominal output. $_______ c. Assuming velocity remains constant what will happen if the money supply rises 20 percent? Nominal output would be $_______ and real output would be $_______. d. If the government established price controls and also raised the money supply 10 percent what would happen? (You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.) The velocity of money might decrease. Real output will increase in a monopolistic economy. The equation of exchange wouldnt hold. Shortages would result in a perfectly competitive economy. Show less