The purchasing power of money increases as the
A) production increases. B) price level falls.
C) demand increases. D) unemployment decreases.
Question 2
Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242. Assume that inflation is ten percent per year. How fast did the economy grow between these two years?
A) 10 percent B) 12 percent C) 21 percent D) 42 percent