For an aggregate demand curve with $\vec { M }$ = 10% and $\vec { v }$
= 0%, if inflation is 6%, then real growth is:

Question

Quizplus · Accepted Answer

The aggregate demand curve is given by the equation: $\vec { M } + \vec { v } = \text{Inflation} + \text{Real Growth}$. Given $\vec { M }$ = 10%, $\vec { v }$ = 0%, and inflation = 6%, we can solve for real growth: 10% + 0% = 6% + Real Growth, which gives Real Growth = 4%.

For an Aggregate Demand Curve With M⃗\vec { M }M = 10% And

For an Aggregate Demand Curve With $\vec { M }$ = 10% And