Suppose That Real GDP Grows by 3 Percent a Year

question 3

Multiple Choice

Suppose that real GDP grows by 3 percent a year, the quantity of money grows 5 percent a year, and velocity does not change. In the long run, the inflation rate equals

• A)8 percent.
• B)10 percent.
• C)3 percent.
• D)5 percent.
• E)2 percent.

---

Definitions:

Proprietary Software

Software that is owned by an individual or company, with usage rights typically obtained through purchase or licensing.

Individual Users

Refers to single consumers or end-users who use products or services for personal, as opposed to commercial, purposes.

Spreadsheet

A digital document consisting of rows and columns used to organize data, perform calculations, and manage information.

Project Data

Information collected and used during the execution of a project, including metrics, progress reports, and outcomes.