Fill out the following table using the quantity equation: 
(A)Calculate the growth rate for each of the four variables between 1972 and 1973.
(B)Calculate nominal GDP for 1972 and 1973, and then calculate the growth rate of nominal GDP between 1972 and 1973. Compare this result with the sum of the growth rates of real GDP and the price level between those two years.
(C)The quantity equation in growth rates can be written as Growth in M + growth in V = growth in GDP + growth in P. Does the growth-rate form of the quantity equation work for the period from 1972 through 1973?
(D)Compare the velocity in 1974 with the velocity in 1975. Is this surprising? Explain.
Definitions:
Inelastic
Describes demand that is not very sensitive to changes in price, meaning that quantity demanded changes little when prices change.
Price Elasticity
A measure of how much the quantity demanded of a good changes in response to a change in price.
Infinitely Elastic
Describes a perfectly elastic demand or supply curve, where the quantity demanded or supplied changes by an unlimited amount in response to any change in price.
Income Elasticity
A measure of how the demand for a good or service changes in response to changes in income.
Q4: What is the most common reason for
Q8: As more capital is added per worker,
Q27: Use the analysis presented in the text
Q54: The rate of female participation in the
Q121: The Current Population Survey is a survey
Q121: Economic fluctuations are largely a result of
Q129: Which of the following statements is true?<br>A)
Q146: Suppose two separate growth-accounting studies between 1980
Q152: Which of the following are a liability
Q156: The growth rate of productivity is measured