In 1980 the price level was 71.73, Ml was $397.9 billion, and nominal output was $2,708 billion.
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In 1980 the price level was 71.73, Ml was $397.9 billion, and nominal output was $2,708 billion. In 1981 the price level increased to 78.88 and Ml increased to $426.8 billion,
(a) Assuming the base year of the price level is 1987, what was real output in 1980?
(b) What was the inflation rate between 1980 and 1981?
(c) What do you think led to this inflation?
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Related Book For 
Money Banking And Financial Markets An Economic Approach
ISBN: 9780395643952
1st Edition
Authors: Michael R. Baye, Dennis Jansen
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