Annual output of goods and services of labor

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Reference no: EM132072382

The growth in the gross domestic product (GDP = the annual output of goods and services of labor and property of a country) in real terms is usually 2-3% annually for the United States. Suppose the Federal Reserve Board chairman announced that the money supply will be allowed to grow by 6% in the next year. Supposing the real GDP growth is 2.4%, is this announcement good news or bad and why? Be sure to note any assumptions you make to give your response.

Reference no: EM132072382

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