Using the Equation of Exchange, If the Nominal GDP Is

question 130

Multiple Choice

Using the equation of exchange, if the nominal GDP is $8,000 billion and the money supply is $1,600 billion, then

• A) the price level is 5.0.
• B) the price level is 0.2.
• C) velocity is 5.0.
• D) velocity is 0.2.

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Definitions:

Standard Error

A statistical measure that estimates the accuracy with which a sample distribution represents a population by using the standard deviation.

Dependent Variable

Outcomes or responses that researchers are interested in explaining or predicting, which change in response to independent variables.

Standard Error Of Estimate

A measure of the accuracy with which a sample distribution represents a population by quantifying the dispersion of sample mean values around the true population mean.

Predicted Values

Estimates or forecasts of outcomes generated by a model based on known data and relationships.