Question
Suppose that in 2005 in Monetaria the money supply is 10,000 and the nominal GDP is 20,000. 3b. In 2018 the money supply was 18,850.
Suppose that in 2005 in Monetaria the money supply is 10,000 and the nominal GDP is 20,000.
3b. In 2018 the money supply was 18,850. The real GDP for 2018 was 29,370 in 2005 dollars. Find the average growth rate of the money supply and the average growth rate of real GDP. (Hint: what is the relationship between real and nominal GDP for the base year?)
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Capital In The Twenty-First Century
Authors: Thomas Piketty, Arthur Goldhammer
1st Edition
067443000X, 9780674430006
