In an economy, output volume increases by 2% over a year, while the quantity of money rises by 5%. If the velocity of circulation of money stays unchanged, what are the approximate increases in the price level and the money value of national income?
- Aincrease in price level 2%; increase in money value of national income 5%
- Bincrease in price level 2%; increase in money value of national income 7%
- Cincrease in price level 3%; increase in money value of national income 5%
- Dincrease in price level 3%; increase in money value of national income 7%