In an Economy in Which Velocity Is Constant and Real

question 5

Multiple Choice

In an economy in which velocity is constant and real output grows at an average rate of 4 percent per year,a 4 percent average rate of growth in the money supply would result in:

• A)a constant price level.
• B)a slowly increasing price level.
• C)a rapidly increasing price level.
• D)constant real GDP.
• E)constant nominal GDP.

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Definitions:

McLuhan

Marshall McLuhan was a Canadian philosopher and professor known for his work on media theory and his prediction of the World Wide Web nearly thirty years before it was invented.

Medium Matters

The concept that the medium through which information is conveyed affects the interpretation and understanding of that information.

Baudrillard

A French sociologist and philosopher known for his theories on media, simulation, and hyperreality.

Simulation

Baudrillard’s assertion that media create a “simulated” world through the reinforcement of certain images and signs.