Suppose the Solow growth rate is 2% and that spending growth increases from 8% to 12% due to a permanent increase in the money supply (Draw the graph!). Assuming prices are sticky, and that in the short run actual inflation increases to 8%, then in the long run the real growth rate would be ___ and in the long run the inflation rate would be ___
blank 1 (-3%, 7%, 1%, less than -3%, greater than 8%, 8%, 6%)
blank 2 (12%, 6%, 3%, 7%, greater than 14%
