If an Economy Produces 3,000 Units of Output When the Price

question 146

Multiple Choice

If an economy produces 3,000 units of output when the price level is $2 and the money supply is $2,000, what is the velocity of money?

• A) 2
• B) 3
• C) 67
• D) 150

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Definitions:

Used Cars

Pre-owned vehicles that have been previously registered and used by one or more owners.

Constant Marginal Cost

A situation where the marginal cost of producing one additional unit of output is the same, regardless of the level of production.

Separate Markets

Markets for different goods or services that do not affect each other, often due to geographical, product differentiation, or segmentation reasons.

Monopolist

An individual or entity that has exclusive control over the production and sale of a particular product or service, facing no competition.