If the income velocity of circulation of money is constant, and the money supply grows by 8% while the average price level rises by 5%, what is the approximate percentage 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 constant, and the money supply grows by 8% while the average price level rises by 5%, what is the approximate percentage change in real output?