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    long run inflation rate

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    In the US the long run inflation rate can be expressed simply as the growth rate of money minus the long run growth rate of real GDP.

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    A country's long run inflation rate is approximately equal to the rate of growth of the money supply minus the rate of growth of real GDP.
    From the macroeconomic theory, the velocity of money measures how many times per year the typical dollar bill is used to ...

    Solution Summary

    A country's long run inflation rate is examined.