The neutrality of money revisited
a. Fill in the empty spaces after Year 1 in the chart below:
b. What is the growth rate of the nominal money supply between years 1 and 2, 2 and 3, and 3 and 4?
c. What is the rate of inflation between years 1 and 2, 2 and 3, and 3 and 4?
d. What is the change in the real money supply between years 1 and 2, 2 and 3, and 3 and 4?
e. What assumption has been made about real output growth if this data describe the medium run?