Compute the rate of inflation using money supply


Compute the rate of inflation using money supply and the real GDP.

1) If velocity is unchanged and the money supply grows by 13% and the real GDP grows by 4%, what is the rate of inflation?

2)If velocity is constant and real GDP grows by 2.5% per year, how much would the Money Supply grow to have zero inflation?

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Business Economics: Compute the rate of inflation using money supply
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