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Please explain this formula clearly, how did this formula derived? thanks ! PY Assume that real GDP increases at the rate g + n where

Please explain this formula clearly, how did this formula derived? thanks !

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PY Assume that real GDP increases at the rate g + n where g is the rate of improve- ment of technology and n is the population growth rate. If we use M to denote the monetary base we have M= P . Y/ V. Using the rule of thumb for growth rates and assuming that velocity is constant we have AM =x+g +n. M

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