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.Recently, in the USA we see an increase in CPI of 7.5%/yr. the Fisher equation MV=PY (B). Based on the fisher equation, what is the significance of potential GDP?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(A).Recently, in the USA we see an increase in CPI of 7.5%/yr. the Fisher equation MV=PY (B). Based on the fisher equation, what is the significance of potential GDP?

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