Velocity Can Be Calculated as the Ratio Of

question 67

Multiple Choice

Velocity can be calculated as the ratio of:

• A)nominal GDP to real GNP.
• B)nominal GDP to the money supply.
• C)real GDP to the price level.
• D)the money supply to the price level.

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Definitions:

Economy

The large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Short-run Equilibrium

A state in which supply and demand are balanced, prices are stable, and there's no tendency for change in the short term.

Aggregate Supply

The comprehensive stock of goods and services intended for sale by firms within an economy throughout a certain duration.

Economy

An economy encompasses all the production, distribution, and consumption of goods and services within a particular geographic region. It involves activities related to wealth and resources.