Within an economy, the volume of output decreases by 2% over a year, whereas the quantity of money increases by 3%. If the velocity of circulation of money stays unchanged, what are the approximate rises in the price level and the money value of national income?
- Aincrease in price level 1%; increase in money value of national income 3%
- Bincrease in price level 1%; increase in money value of national income 5%
- Cincrease in price level 5%; increase in money value of national income 3%
- Dincrease in price level 5%; increase in money value of national income 5%