Specialty Construction Group, Inc. added 7 new photos. We do things other than entrances as well! Retaining wall and sidewalk install at an office complex in Alpharetta. Complicated little site, but now the employees no longer have to wall in the street from the parking lot to the building.
The demand for money is a demand for real cash balances because people hold money for the purpose of buying goods and services. The higher the price level, the more money balances a person has to hold in order to purchase a given quantity of goods.
Question: Suppose that this year's money supply is $500 bill... Suppose that this year's money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion. a. What is the price level? What is the velocity of money? b. Suppose that the velocity is constant and the economy's output of goods and services rises by 5% each year.