If velocity is growing by 2 percent per year and real output is ...

[nramada]

If velocity is growing by 2 percent per year and real output is growing 6 percent per year, according to the equation of exchange, in order to maintain stable prices, the money supply would have to:
 a. grow by 3 percent.
 b. grow by 4 percent.
 c. grow by 8 percent.
 d. grow by 12 percent.

Question 2

Producer surplus from a unit of output is the difference between the market price and the seller's cost of producing that unit.
 a. True
  b. False
  Indicate whether the statement is true or false

[xiaomengxian]

Answer to Question 1

b

Answer to Question 2

True

[nramada]

TYSM

[diana chang]

Excellent