The Function of Money That Enables Individuals to Exchange Goods

question 24

Multiple Choice

The function of money that enables individuals to exchange goods and services in a common unit of account is called:

• A)medium of exchange.
• B)store of value.
• C)unit of account.
• D)measure of power.

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Definitions:

Real GDP

A measure of a country's economic output adjusted for inflation, providing a more accurate representation of an economy's size and growth rate over time.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced within a country in a given period, reflecting the actual productivity.

Price Level

A comprehensive average of prices for all goods and services within the economic output.

Inflation

The surge in the overall pricing structure for goods and services, undermining the efficiency of spending.