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Quantity theory of money.

There is one good in the economy: corn.

V= Constant Y= 800 bushels of corn.. In 2008 Money Supply =$2000
P=$5/bushel

In 2009 Fed increases MS by 5% to $2100..

A) Compute 2009 values of nominal GDP and P. Compute inflation
rate for 2008-2009.

B) Suppose tech progress increases Y to 824 in 2009. Compute
2008-2009 inflation rate.

**Please if you answer provide explanations. My teacher gave us
the answers but I really do not understand how she got them or
why.

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