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Suppose the growth in the quantity of money is 3.1 percent and growth in output (GDP) is 2.4 percent. What is the rate of pri
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Answer #1

Growth rate of money = 3.1 %

Growth rate in output = 2.4 %

Rate of inflation = Money growth rate – Real GDP growth rate

= 3.1 % - 2.4 %

= 0.7 %

Rate of inflation = 0.7 %

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