If an Economy Produces 4,000 Units of Output When the Price

question 151

Multiple Choice

If an economy produces 4,000 units of output when the price level is $2 and the velocity of money is 8, what is the money supply?

• A) $1,000
• B) $8,000
• C) $2,000
• D) $4,000

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Definitions:

Imaginative

The ability to think creatively and form mental images or concepts that are not immediately present or have never been directly experienced.

Psychodynamic Theories

Theories in psychology that posit human behavior is influenced by unconscious drives and conflicts stemming from childhood experiences.

Unconscious Mental Forces

Mental processes that are not within an individual's conscious awareness but influence judgments, feelings, or behavior, often explored in psychoanalytic theory.

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.