In the Short-Run Velocity Is Not Constant

question 2

Multiple Choice

In the short-run velocity is not constant. Which of the following variables can be affected by a change in money supply?
I. real GDP
II. nominal GDP
III. the price level

• A) III only
• B) II and III
• C) I, II, and III
• D) If velocity is not constant, then none of the variables is affected.

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Definitions:

Evoked

Brought about or called to mind; in neuroscience, it can refer to responses or potentials generated by the brain in reaction to a stimulus.

Olfactory Receptor Cells

Specialized neurons in the nose involved in the detection of odor molecules, playing a key role in the sense of smell.

Bypassing Thalamus

Refers to the process where certain sensory inputs (typically olfactory) are processed directly by the brain without first passing through the thalamus, unlike other sensory information.

Olfaction

The sense of smell, a chemical sensing system that detects odors or substances in the air and is integral to various human and animal behaviors.