# data[].attributes.body
1. What is hyperinflation and how is it caused?

2. What is the quantity theory of money, and how is it related to nominal GDP?

3. What is rational expectations theory, and why is it unrealistic?

4. What is a monetary rule?

# data[].attributes.attachment_link.title
APMac U5 L3   Money Growth and Inflation

# data[].attributes.attachment_link.title
AP Macroeconomics: 5.3 Money Growth and Inflation

# data[].attributes.body
Explain (using graphs as appropriate) how inflation is a monetary phenomenon.

Define the quantity theory of money.

Calculate the money supply, velocity, the price level, and real output using the quantity theory of money.

# data[].attributes.body
There are long-run implications of monetary and fiscal policy.

# data[].attributes.body
Inflation (deflation) results from increasing (decreasing) the money supply at too rapid of a rate for a sustained period of time.

When the economy is at full employment, changes in the money supply have no effect on real output in the long run.

In the long run, the growth rate of the money supply determines the growth rate of the price level (inflation rate) according to the quantity theory of money.

# data[].attributes.attachment_link.title
APMac Unit 5 Lesson 3 - Money Growth and Inflation

# data[].attributes.attachment_link.description
Start studying APMac Unit 5 Lesson 3 - Money Growth and Inflation. Learn vocabulary, terms, and more with flashcards, games, and other study tools.