# initially the money supply is $2 trillion, the price level equals 4, the real GPD is $6 trillion in base-year dollars

Suppose that initially the money supply is $2 trillion, the price level equals 4, the real GPD is $6 trillion in base-year dollars, and income velocity of money is 12. The the money supply increases by $200 billion, while the real GDP and income velocity of money remain unchanged.

A.According to the quantity theory of money and prices, calculate the new price level after the increase in money supply ___.

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