The equation of exchange is given by M×V=P×Q, where M is the money supply, V is the velocity of money, P is the economy's price level, and Q is real GD? Suppose the following groph shows the current aggregate demand (AD) and aggregate supply (AS) curves in a hypothetical economy. If the velocity of money is 2, the money supply in this economy is Shilt the AD curve on the previous graph to show the effects of a Note: Select and drag one or both of the curven to the desired pos to its original position, just drag it a little farther. Based on the new price level, the new money supply mast be 1 the long run If the velocity of money remains at 2 . because the percente 581 trillion the price level is money supply. This ithustrates the the percentage decrease in the Nominal GDP in this economy is If the velocity of money is 2 , the money supply in this economy is Shirt the AD curve on the previous graph to show the effects of a decrease in the money supply. Note: 51 i to the desired position, Curves will snap into position, so if you try to move a curve and it snaps ba to its ori Based o upply must be trillion in the long run if the velocity of money remains at 2 . Becruse the percentage decrease in the price level is the percentage decrease in the money supply. This illustrates the Nominal GDP in this economy is If the velocity of money is 2 , the money supply in this economy is Shift the AD curve on the previous graph to show the effects of a decrease in the money supply. Note: select and drag one or both of the curves to the desired position. Curves will snap into post to its original postition, just drag it a little farther. Based on the new price level, the new money supply must be trillion in the long run if mey remains at 2 . Because. money supply. This illustrates the the percentage decrease in the price level is the percentage decrease in the If the velocity of money is 2 , the money supply in this economy is Shift the AD curve on the previous graph to show the effects of a decrease in the money supply.