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24-05-2023
Business

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Relationship between money growth and inflation.
Consider an economy which only produces corn. The economy has enough labor, capital, and land to produce Y = 2000 bushels of corn. Vis constant. In 2008, M = $1000, P = $3/bushel.
How many times does a currency not changes hand in this case? 6
What is value of the nominal GDP in 2008? $ 6000

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