According to Monetarists,changes in Velocity Can

question 46

Multiple Choice

According to monetarists,changes in velocity can

• A) lower GDP
• B) raise GDP
• C) shift the SRAS,but not the LRAS
• D) a and b
• E) a,b and c

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Definitions:

Shortage

A situation in which demand for a good or service exceeds its supply in a market.

Equilibrium

Equilibrium is the state in a market where the quantity supplied equals the quantity demanded, resulting in market stability and no incentive for price changes.

Minimum Wage

The lowest legally permissible wage that employers can pay their employees, intended to protect workers from unduly low pay.

Labor Shortage

A situation in which employers are unable to fill vacancies with qualified candidates, often due to a lack of available workers or skills in the labor market.