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Suppose the United States money supply grows by 2%, velocity grows by 5%, Real GDP grows by 2%, and price level grows by 5%. Ceteris
Suppose the United States money supply grows by 2%, velocity grows by 5%, Real GDP grows by 2%, and price level grows by 5%. Ceteris paribus, what will happen to both Real GDP and price levels in the long run if a positive shock increases money supply growth to 5% and velocity to 9%?
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