Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

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 %

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