Assume that the output ratio initially equals 100 and that natural real GDP grows by 3 percent

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Assume that the output ratio initially equals 100 and that natural real GDP grows by 3 percent per year. If pe remains constant and actual real GDP rises, what happens to the rate of inflation?

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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Question Posted: Dec 09, 2015 03:14 AM

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Assume that the output ratio initially equals 100 and that natural real GDP grows by 3 percent

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What happens to the rate of inflation depends on how fast actual real GDP rises If actual real G...View the full answer

Macroeconomics

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