If an Economy Produces 2,000 Units of Output When the Price

question 145

Multiple Choice

If an economy produces 2,000 units of output when the price level is $2 and the money supply is $1,000, what is the velocity of money?

• A) 4
• B) 500
• C) 1
• D) 2

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Definitions:

Grandma

A familial term used to refer to the mother of one's parent, often associated with elder care, wisdom, and family traditions.

Bakery

A place where bread, pastries, cakes, and other baked goods are made or sold.

Gross Domestic Product

Measures the total value of all goods and services produced within a country’s borders over a specific time period, indicative of its economic health.

Sanitation

Measures aimed at promoting hygiene and preventing disease, especially through the provision of clean water and disposal of sewage and waste.