Inflation – Work It Out: Question 1 In the country of Orcam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 12 percent per year, and the nominal interest rate is 12 percent. Calculate the growth rate of nominal GDP. a. Calculate the growth rate of nominal GDP. growth rate of nominal GDP:
Inflation – Work It Out: Question 1 In the country of Orcam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 12 percent per year, and the nominal interest rate is 12 percent. Calculate the growth rate of nominal GDP. a. Calculate the growth rate of nominal GDP. growth rate of nominal GDP:
Chapter14: Money And The Economy
Section: Chapter Questions
Problem 6WNG
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