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:

Profit Earn

The income a business receives after all expenses and costs are subtracted from total revenue.

Price Discrimination

The practice of charging different prices for the same product or service to different consumers, based on their willingness to pay.

Pure Monopoly

refers to a market structure where a single company or entity has exclusive control over a particular good or service, eliminating direct competition.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and opportunity costs.