Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

Provided that the income velocity of circulation of money remains constant, if the price level rises by 5% and the money supply rises by 2%, what is the approximate percentage change in real output (transactions)?

  • A–3%
  • B–2.5%
  • C+3%
  • D+7%

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