According to the quantity theory of​ money, if in a​ year's time, real GDP grew from​ $10 trillion to​ $10.2 trillion, and nominal GDP for the same time period grew from​ $10 trillion to​ $10.5 trillion, then​ ____________. ​(Check all that​ apply) A. the growth rate of inflation is 3 percent. B. the growth rate of the money supply is 5 percent. C. the growth rate of inflation is 5 percent. D. the growth rate of the money supply is 3 percent.

8. Inflation-induced tax distortions Pat receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 3% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 20%. The following table shows two scenarios: a low-inflation scenario and a high- inflation scenario. Given the real interest rate of 3% per year, find the nominal interest rate on Pat's bonds, the after-tax nominal interest rate, and the after-tax real interest rate under each inflation scenario. Inflation Rate Real Interest Rate Nominal Interest Rate (Percent) 2.5 6.5 (Percent) 3.0 3.0 (Percent) After-Tax Nominal Interest Rate (Percent) After-Tax Real Interest Rate (Percent) Compared with lower inflation rates, a higher inflation rate will nominal interest income. This tends to saving, thereby the economy's long-run growth rate. the after-tax real…

5. Computer forecasting models have Group of answer choices -been able to forecast changes in the growth rate of real GDP with considerable accuracy. -had only limited success predicting turns in key economic variables such as real GDP. -been able to accurately forecast the future direction of inflation but not real GDP. -been able to accurately forecast the future direction of real GDP but not inflation.   Which is correct?

5. The slope and position of the long-run aggregate supply curve Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply. PRICE LEVEL Suppose the economy produces real GDP of $60 billion when unemployment is at its natural rate. 132 128 124 Use the purple points (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve on the graph. 120 116 112 108 The inflation rate 104 The quantity of physical capital The size of the labor force 100 The price level 0 10 20 30 40 50 60 OUTPUT (Billions of dollars) 70 80 S Not affect the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the left Shift the long-run aggregate supply curve to the right c 3 LRAS Suppose the government passes a law that significantly increases the minimum wage. The policy will cause the natural rate of unemployment to , which will: ? In the following…