Question
(a) Assume the velocity of money and price levels have remained constant over the past year. If real GDP grew by 5% over that time,
(a) Assume the velocity of money and price levels have remained constant over the past year. If real GDP grew by 5% over that time, by what percentage did the money supply grow?
(b) Assume that the price level in the economy remained constant over the past year. If real GDP grew by 6.5%, and the money supply increased by 4.5%, then by what percentage did the velocity of money grow?
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
