Economics - Headway

Standard 9. - Economic performance (the performance of an economy toward meeting it's goals) can be measured, and is affected by, various long-term factors.

Benchmark - 9.2.5.9.2 - Measure inflation in terms of a percentage change in a price index: analyze past and recent data to explain how the money supply is related to long-run inflation with the equation of exchange.              

                  http://www.youtube.com/watch?v=ysERNYj1Js&feature=player_detailpage

1.  How is inflation measured?

2.  How is the money supply related to long-term inflation with the equation of exchange?

3.  MV=PQ  What does each letter represent? 

4.  What will a percentage change in the money supply result in the price level?