According to the Monetarists,the Ratio of Nominal GDP to the Money

question 28

Multiple Choice

According to the monetarists,the ratio of nominal GDP to the money stock should be

• A)highly unstable in short run and in long run.
• B)unstable only during recession.
• C)unstable only in the long run.
• D)quite stable in the short run and the long run.
• E)unstable only if the LM curve shifts.

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Definitions:

Mixed Cost

A cost composed of a fixed component and a variable component that changes with the level of activity or production.

High-low Method

An approach used in cost accounting to determine the variable and fixed components of a cost by analyzing the highest and lowest levels of activity.

Utility Cost

The expense incurred for using utilities such as electricity, water, and natural gas in a business operation.

Total Cost

The sum of all costs associated with the production and delivery of a company's products or services, including both fixed and variable costs.