Dynamic aggregate demand (AD) can be derived using the quantity theory of money: Label the equation SO that it accurately expresses the quantity theory of money in dynamic form:
growth in the money supply
Answer Bank
unemployment
growth in velocity
inflation
real economic growth
marginal propensity to save
Suppose that the velocity of money is stable, 4% real economic growth is occurring, the rate of inflation is 4%, unemployment is 5.3%, and the marginal propensity to save is 3%. By how much is the money supply growing? Enter your answer as a percentage.