Refer to the Above Diagram for the Market for Money

question 55

Multiple Choice

Refer to the above diagram for the market for money.If each dollar held for transactions purposes is spent four times per year on the average, we can infer that the:

• A)real GDP is $800.
• B)nominal GDP is $800.
• C)money supply must be $800.
• D)nominal GDP is $1,200.

---

Definitions:

Cost Of Goods Available For Sale

The total cost of all merchandise or products that a company has in stock and is ready to be sold, including both new and existing inventory.

Schedule Of Cost Of Goods Sold

A detailed statement showing the direct costs, indirect costs, and manufacturing overheads incurred to produce goods sold in a period.

Finished Goods Inventory

This inventory includes products that have completed the manufacturing process but have not yet been sold to customers.

Cost Of Goods Manufactured

The total manufacturing costs of goods that are completed and ready for sale within a specific accounting period.