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Use the quantity equation, MV = PY, to answer the following questions. i.(3) What determines the growth rate of real output in the long run?

Use the quantity equation, MV = PY, to answer the following questions.

i.(3) What determines the growth rate of real output in the long run?

ii.(3) What determines the growth rate of the money supply in the long run

iii.(3) What assumptions does the quantity theory make about the long run growth rate of velocity and WHY?

iv.(5) Finally, what determines the (endogenous) long run inflation rate?

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