The idea of continuous economic growth as a perpetual motion machine best reflects the prediction of which growth theory?
A) no growth theory
B) the classical growth theory
C) the traditional growth theory
D) the Keynesian growth theory
E) the new growth theory
Question 2
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.
