Suppose that this year's money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion. The price level is , and the velocity of money is . Suppose that velocity is constant and the economy's output of goods and services rises by 3 percent each year. Use this information to answer the questions that follow. If the Fed keeps the money supply constant, the price level will , and nominal GDP will . True or False: If the Fed wants to keep the price level stable instead, it should keep the money supply unchanged next year. True False If the Fed wants an inflation rate of 9 percent instead, it should the money supply by % . (Hint: The quantity equation can be rewritten as the following percentage change formula: (Percentage Change in M) (Percentage Change in V)