a. Using these data, calculate the average annual rate of change in both real GDP and M2 over this 10-year period.
b. If we assume that velocity was constant during this period, what was the average annual inflation rate?
c. Using the GDP Price Deflator data, calculate the average annual inflation rate over this 10-year period.
d. Use your answers to parts (b) and (c) to discuss what must have happened to velocity during this period.