If Velocity Is Constant And, in Addition, the Factors of Production

question 97

Multiple Choice

If velocity is constant and, in addition, the factors of production and the production function determine real GDP, then:

• A) the price level is proportional to the money supply.
• B) real GDP is proportional to the money supply.
• C) the price level is fixed.
• D) nominal GDP is fixed.

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Definitions:

Marketing Exchange

Marketing exchange is the process through which two or more parties give something of value to each other to satisfy their respective needs.

Nonprofit Organization

An organization whose primary goal is not to make a profit but to benefit the public or a specific group of people.

Financial Remuneration

Payment for work or services, including salaries, wages, bonuses, or other forms of compensation.

Exchange

The trade of things of value between buyer and seller so that each is better off after the trade.