From the quantity equation we find that the rate of inflation is equal by definition to the growth rate of nominal GDP ________ the growth rate of real GDP

The extended least squares assumptions are of interest, because

A) they will often hold in practice. B) if they hold, then OLS is consistent. C) they allow you to study additional theoretical properties of OLS. D) if they hold, we can no longer calculate confidence intervals.

The policy rule recommended by monetarists is that the money supply should be increased at the same rate as the potential growth in:

A. Real GDP B. Population C. The level of prices D. The velocity of money