Author Question: If the economy's real GDP is growing at 3 percent each year and velocity is constant, for the price ... (Read 93 times)

naturalchemist · **on:** Jun 30, 2018

If the economy's real GDP is growing at 3 percent each year and velocity is constant, for the price level to increase:
a. the money supply would have to grow at more than 3 percent per year.
b. the money supply would have to grow at exactly 3 percent per year.
c. the money supply would have to grow at less than 3 percent per year.
d. the money supply would have to remain stable.

Question 2

Other things equal, advances in technology make resources more productive.
a. True
b. False
Indicate whether the statement is true or false