Problem: Velocity and the quantity equation
Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2014, the money supply was $240, the price of a pie was $7.20, and the economy produced 500 pies.
Fill in the missing values in the following table, selecting the answers closest to the values you calculate.
| Year | Quantity of Money | Velocity of Money | Price Level | Quantity of Output | Nominal GDP |
| (Dollars) | (Dollars) | (Pies) | (Dollars) |
| 2014 |
240 |
|
7.20 |
500 |
____ |
| 2015 |
252 |
15 |
_____ |
500 |
_____ |
The money supply grew at a rate of____ from 2014 to 2015. Since pie output did not change from 2014 to 2015 and the velocity of money____ , the change in the money supply was reflected ____ in changes in the price level. The inflation rate from 2014 to 2015 was____.