What Do Most Economists Think Is the Most Accurate Statement

question 81

Multiple Choice

What do most economists think is the most accurate statement about velocity?

• A) It is fairly constant in the short run, but varies considerably in the long run, complicating predictions about nominal GDP.
• B) M₁ velocity is more stable in the short run than M₂ velocity, and it has been a superior tool in predicting changes in nominal GDP.
• C) It is not constant in the short run, and predictions about nominal GDP have not fared well.
• D) M₂ velocity has been less stable than M₁ velocity, but both are reliable enough to make accurate predictions about changes in nominal GDP.

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Definitions:

Negotiation

The process of discussing terms between parties to reach a mutual agreement or resolve differences.

Arbitration

A method of dispute resolution where an impartial third party, called an arbitrator, makes a decision to resolve a dispute outside of court.

Private Civil Trial

Trials run according to the same rules of procedure and evidence as trials run under the official auspices of the court. In a private trial, the parties can hold the trial when and where they choose, and they can choose the judge. Lengthy civil cases are well-suited to this approach.

Retired Judge

A former judge who has ended their official career on the bench but may still perform certain judicial duties on a temporary or part-time basis.