The velocity of circulation is growing at 6 percent a year, the real interest rate is 2 percent a year, the nominal interest rate is 5 percent a year, and the growth rate of real GDP is 2 percent a year Calculate the inflation rate, the growth rate of money, and the growth rate of nominal GOP The inflation rate is percent a year.

The velocity of circulation is growing at 6 percent a year, the real interest rate is 2 percent a year, the nominal interest rate is 5 percent a year, and the growth rate of real GDP is 2 percent a year Calculate the inflation rate, the growth rate of money, and the growth rate of nominal GOP The inflation rate is percent a year.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 13P

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