Imagine Two Economies That Are Identical Except That for a Long

question 170

Multiple Choice

Imagine two economies that are identical except that for a long time, economy A has had a money supply of $1,000 billion while economy B has had a money supply of $500 billion. It follows that

• A)real GDP and the price level are lower in country B.
• B)real GDP, but not the price level, is lower in country B.
• C)the price level, but not real GDP is lower in country B.
• D)neither the price level or real GDP is lower in country B.

---

Definitions:

Hofstede

A framework for cross-cultural communication, developed by Geert Hofstede, that analyzes cultures in terms of five (later six) dimensions such as power distance, individualism vs. collectivism, and uncertainty avoidance.

Business Relationship

A connection between two or more businesses that involves some level of mutual benefit, cooperation, or dependency.

BRIC Countries

An acronym for Brazil, Russia, India, and China, representing rapidly developing countries known for their significant economic growth potential.

Market Growth

The increase in the demand for a particular product or service over time, often measured as a percentage increase in market size.