Economics help! 10 PTS!?

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duster6

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Velocity in the country of Shem is always stable. In 2002, the money supply was $200 billion and the GDP price deflator was 100. In 2003, the money supply increased to $240 billion, the price level increased by 15 percent, and nominal GDP equaled $1,200 billion. By how much did real GDP increase between 2002 and 2003?

thanks for your help
 
Assuming M/P=Y/V
V°=V¹=const
M¹ = 240 b
M° = 200 b

MV=YP=NGDP

M¹V¹=Y¹P¹=NGDP¹
240V=1200
V=1200/240=5
V°=V¹=5
P¹=(P°+15%)=1.15P°
1200=1.15P°Y¹
Y¹=1200/1.15P°

M°V°=Y°P°
200*5=Y°P°=1000
Y°=1000/P°

ΔY%=100x(Y¹-Y°)/Y° =100x((Y¹/Y°)-1))
Y¹/Y° = (1200/1.15P°) / (1000/P°) = 1200/1150
ΔY%=(1200-1150/1150)x100 = 100x50/1150 = 500/115 = 100/23 ≈ +4.35%
 
it could be that the real GDP changed by 15 %.
(since in 2002 = 886.9495 and in 2003=1043.47)

Or It could be that the GDP did not change at all which i doubt is the answer.
 
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