It is time to take control of the Federal Reserve, which controls the U.S. money supply (M). In this chapter, we are thinking only about the "long run," so real GDP (Y ) is out of the Fed’s control, as is velocity (v). The Fed’s only goal is to make sure that the price level (P) is equal to 100 each and every year. That is just known as "price stability," one of the main goals of most governments. Fill in the missing values of M for the table.
Year M v = P Y
1 25,000 2 100 500
2 4 100 500
3 4 100 400
4 4 100 200
5 2 100 400
6 1 100 600
Year 2, M =
Year 3, M =
Year 4, M =
Year 5, M =
Year 6, M =
