If real GDP grows at 4 percent, the quantity of money grows at 6 percent, and velocity does not change, then in the long run the inflation rate is
A) 2 percent. B) 4 percent. C) 10 percent. D) 1.5 percent. E) 6 percent.
A
You might also like to view...
If the dollar-pound exchange rate is $2.00 per pound, then a shirt priced at 25 pounds will cost an American
a. $25 b. $50 c. $26 d. $27 e. an amount that cannot be calculated without additional information.
Draw a production possibilities frontier for an economy, with the axes labeled "military goods" and "peace goods." Indicate the region that is attainable and the region that is not. Explain the shape of the curve-what assumptions did you make in drawing it?
Under the adaptive expectations hypothesis, which of the following is the effect of a shift to a more expansionary monetary policy?
a. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. b. In the short run, the real rate of output will increase, but in the long run, it will be unchanged. c. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. d. In the short run, the impact on the real rate of output is uncertain, but in the long run, output will increase.
What factors are part of the leading economic indicators?
a. Employment, personal income, and production b. Interest rates and average duration of unemployment c. Consumer confidence, consumer spending, and machinery orders d. House sales, personal income, and interest rates