Real GDP Is $2,560 Billion, the Quantity of Money $800

question 28

Multiple Choice

Real GDP is $2,560 billion, the quantity of money $800 billion, and the velocity of circulation is 4.The GDP deflator is

• A)3.2.
• B)6.4.
• C)1,000.
• D)125.
• E)3,200.

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Definitions:

MPC

The marginal propensity to consume, which is the fraction of additional income that a household spends on consumption.

Disposable Income

Financially viable resources for households' spending and saving strategies after deducting income taxes.

Consumption

The action of using up a resource or the purchase of goods and services by households.

APS

A generic term potentially referring to various organizations or concepts; without specific context, a precise definition cannot be provided. If referring to economic terms, it might be erroneous or too vague without further context.