M1 is $19 Trillion, Real GDP is $23.7 trillion, and Nominal…
M1 is $19 Trillion, Real GDP is $23.7 trillion, and Nominal GDP is $30.5 trillion. a.) Find the GDP deflator (price level). b.) Find the velocity of M1. c.) Assuming that velocity remains constant and that real GDP grows by 2.3%, use the quantity theory of money to determine what money growth must be to limit inflation to 2%. Show your work!