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What is the rate of inflation between the two years

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Reference no: EM132667683

You are given the following data for 2006 and 2007 2006 2007

Money supply 1000 1050

Velocity 8.0 8.0

Real GDP 12000 12000

a) Find the price level for 2006 and 2007. What is the rate of inflation between the two years?

b) What is the rate of inflation between 2006 and 2007 if the money supply in 2007 is 1100 instead of 1050?

c) What is the rate of inflation between 2006 and 2007 if the money supply in 2007 is 1100 and output in 2007 is 12600?

Reference no: EM132667683

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