Over a year, the money supply in a nation grew by 6 percent, while velocity fell by 1 percent and real GDP rose by 2 percent. This results in an inflation over the year of ________ percent

What is convergence hypothesis? Why should we expect convergence in the long run?

Which of the following is most important if a country is going to achieve and sustain rapid economic growth?

a. large government expenditures as a share of GDP b. institutions and policies that are supportive of competition (open markets) and freedom of exchange. c. free elections and political democracy d. monetary policy makers who are willing to expand the supply of money rapidly