according to the quantity equation of money，we have: MV=Py where M is the amount of money and v is the velocity，p is the price level and y is the real output when y=1000 and M=200 ，p=1 we have v=5 If the velocity of money is fixed to v=5，and the money supply is increased to $400，while real output still remains y=1000，we can obtain the price per unit of output by p=MV/y=2 which suggest that the price level is doubled and there will be an Inflation in the
