Real GDP is 13 trillion and aggregate planned expenditure is 14 trillion. As a result, unplanned inventory change is ________ and real GDP ________.
A) negative; decreases
B) positive; increases
C) negative; increases
D) positive; decreases
E) negative; does not change
Question 2
If velocity does not change and the quantity of money grows at the same rate as does real GDP, then in the long run
A) the real interest rate is less than the nominal interest rate.
B) the inflation rate equals zero.
C) the nominal interest rate equals zero.
D) the inflation rate equals the growth rate of the quantity of money.
E) the nominal interest rate is less than the real interest rate.
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