If Real GDP Equals 5,000, Nominal GDP Equals 10,000, and the Price

question 34

Multiple Choice

If real GDP equals 5,000, nominal GDP equals 10,000, and the price level equals 2, then what is velocity if the money stock equals 2,000?

• A)2
• B)2.5
• C)5
• D)10

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Definitions:

Purchase Decision

The process by which a consumer selects a product or service over others based on various factors such as need, desire, price, and accessibility.

Limited Temporary Basis

A restricted and short-term arrangement or condition, often applied to agreements, access, or usage rights.

Final Commitment

The ultimate pledge or decision made by a party in a process or agreement.

Warranty Terms

The conditions under which a manufacturer or seller agrees to repair, replace, or refund a purchased product within a specified time frame if it fails to meet stated quality and performance standards.