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Quiz· Business Fluctuations· 4 of 18
Knowledge CheckQuestion 1 of 6

Given money supply growth + velocity growth (%ΔM + %ΔV) = inflation + real GDP growth (π + %ΔYᵣ), if money supply growth is 8% and velocity growth is 0%, what will inflation plus real GDP growth be?

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Lesson: The Long-Run Aggregate Supply Curve