Question

Suppose that an economy is characterized by M = $12 trillion V = 1.8 P = base index = 1.0 What is the real value of output (Q)? Enter your responses rounded to one decimal places (do not include a negative sign (-) with your answers). For example, if your answer is $13.46 trillion then enter 13.5

Answer 1

$21.6 trillion

Step-by-step explanation:

Equation of exchange = ( money supply × velocity) = ( Price × output )

=$12 trillion × 1.8 = $21.6 trillion

I hope my answer helps you