Use This Graph to Answer the Question

question 37

Multiple Choice

Use this graph to answer the question.

-What month in 2010 had the lowest sales?

• A)Month 12
• B)Month 3
• C)Month 2
• D)Month 5

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Definitions:

Quantity Theory of Money

A theory suggesting that the general price levels of goods and services are directly proportional to the money supply in an economy.

Equation of Exchange

An economic equation that represents the relationship between money supply, its velocity, price level, and the volume of transactions in an economy.

Velocity of Circulation

A measure of the rate at which money is exchanged in an economy, typically calculated as the ratio of nominal GDP to the money supply.

Supply-side Economics

Supply-side Economics is a macroeconomic theory that argues economic growth can be most effectively fostered by lowering taxes and decreasing regulation to increase production.