If the income velocity of circulation of money is assumed to stay constant, and the money supply grows by 8% while the average price level rises by 5%, what is the approximate change in real output?
- A–3 %
- B+3 %
- C+8 %
- D+13 %
Economics 9708 · AS & A Level · Oligopoly
If the income velocity of circulation of money is assumed to stay constant, and the money supply grows by 8% while the average price level rises by 5%, what is the approximate change in real output?