Figure 2. On the graph, MS represents the money supply and M…
Figure 2. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes. Refer to figure 2. At the end of 2050 the relevant money-supply curve was the one labeled MS1. At the end of 2051 the relevant money-supply curve was the one labeled MS2. Assuming the economy is always in equilibrium, what was the economy’s approximate inflation rate for 2051?