Suppose an economy has no money, and people use gold for all payments.
a. Discuss the effects of economic growth (an increase in the amount of goods and services that the economy produces) on prices.
b. What happens to prices when more gold becomes available, say due to new openings of gold mines?
c. Who determines the economy's money supply?
d Discuss the advantages and disadvantages of such a "gold standard" economy.

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The Answer of Suppose an economy has no money, and people use gold for all payments.
a. Discuss the effects of economic growth (an increase in the amount of goods and services that the economy produces) on prices.
b. What happens to prices when more gold becomes available, say due to new openings of gold mines?
c. Who determines the economy's money supply?
d Discuss the advantages and disadvantages of such a "gold standard" economy.

Suppose an Economy Has No Money, and People Use Gold