Consider an economy where the money supply is growing at 7 per cent per year and velocity is constant. Which of the following statements about real GDP growth and the inflation rate could be TRUE if the Quantity Theory of Money holds?
A. Real GDP is growing at 2 per cent and inflation is 5 per cent.
B. Real GDP is growing at 7 per cent and inflation is 7 per cent.
C. Real GDP is growing at 2 per cent and inflation is 9 per cent.
D. Real GDP is growing at 9 per cent and inflation is 2 per cent.
Ans: A. Real GDP is growing at 2 per cent and inflation is 5 per cent.
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If Jose is 22-years old, is available to work but does not have a job and made no specific efforts to find a job for the previous month, Jose is classified in the Current Population Survey as
A) not in the labor force. B) not in the working-age population. C) unemployed. D) in the labor force but not in the working-age population. E) employed.
The current Social Security system works to the disadvantage of blacks primarily because the
a. average annual earnings of blacks are generally lower than other groups. b. average life expectancy of blacks is generally less than other groups. c. Social Security tax rates imposed on blacks are higher than those imposed on other groups. d. Social Security benefit formula is disadvantageous to blacks.