Answer:
What is the price level?
From the Equation of Exchange you obtain that:
M × V = P × T
where:
M= the money supply, or average currency units in circulation in a year
V= the velocity of money, or the average number of times a currency unit changes hands per year
P=the average price level of goods during the year
T=an index of the real value of aggregate transactions
Then, price level would be:
M × V = P
T
$500.000.000.000.000 X $20.000=P
$5.000.000.000.000.000.000
2=P The price level is 2
What is the velocity of money?
Velocity of Money = GDP / Money Supply
Velocity of Money = 10.000.000.000.000.000.000 / 500.000.000.000.000
Velocity of Money = 20.000 The velocity of money is 20.000