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Roar Roar
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6 years ago
Suppose output is growing at 4% and the nominal money stock is growing at 0%. Also assume that the economy has reached its medium run equilibrium. Given this information, we know with certainty that
A) inflation is less than 4%.
B) inflation is greater than 4%.
C) inflation is equal to 4%.
D) the real interest rate is equal to the nominal interest rate.
E) deflation occurs.
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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legendvpnlegendvpn
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Roar Author
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#2
5 years ago
Thank you kind sir
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