If Real Output Is $50 Billion, the Price Level Is

question 262

Multiple Choice

If real output is $50 billion, the price level is 10, and velocity is 5, what is the stock of money?

• A) $1 billion
• B) $25 billion
• C) $100 billion
• D) $2,500 billion

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Definitions:

Depletion

The allocation of the cost of natural resources over their useful life, typically related to mining, quarrying, drilling, or timber operations.

Amortization

The gradual write-off of the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.

Trademark

A name, term, or symbol used to identify a business and its products.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities with the aim of generating profits.