Suppose velocity does not change. Then, in the long run, a growth rate of the quantity of money that exceeds growth in real GDP has what effect?
What will be an ideal response?
In the long run, growth in the quantity of money that exceeds growth in real GDP brings inflation. With velocity constant, the inflation rate equals the growth rate of the money supply minus the growth rate of real GDP.
Economics
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Refer to Table 19-11. Real GDP for Tyrovia for 2016 using 2007 as the base year equals
A) $1,140. B) $880. C) $690. D) $560.
Economics
Some argue that tariffs always hurt the imposing country's economic welfare, and are typically designed to shift resources from one sector to another, protected or preferred one, within an economy. Find and discuss a counter example to this argument
What will be an ideal response?
Economics