If the Average Price of Goods and Services in the Economy

question 26

Multiple Choice

If the average price of goods and services in the economy equals $10 and the quantity of money in the economy equals $200,000, then real balances in the economy equal:

• A)10.
• B)20,000.
• C)200,000.
• D)2,000,000.

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Definitions:

Basic Research

Research conducted to increase fundamental knowledge and understanding, without a specific practical aim or application.

Applied Research

Research aimed at solving practical problems and improving human life and conditions through direct applications of scientific knowledge.

General Knowledge

Broad, basic information and facts about a wide range of subjects that are considered common understanding.

Labor Productivity

A measure of the economic output produced per unit of labor input.