The Velocity of Circulation Is Equal to

question 44

Multiple Choice

The velocity of circulation is equal to

• A)the quantity of money divided by nominal GDP.
• B)the quantity of money divided by the price level and then multiplied by real GDP.
• C)the price level multiplied by the quantity of money.
• D)the price level divided by real GDP.
• E)nominal GDP divided by the quantity of money.

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Definitions:

Direct Labor-Hours

The total number of labor hours worked by employees who are directly involved in the manufacturing process.

Job-Order Costing System

An accounting system that accumulates costs per job rather than per time period, used in industries where goods are custom-made.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a certain activity.

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as utilities and materials used in the production process.