In the Long Run, According to the Quantity Theory of Money

question 53

Multiple Choice

In the long run, according to the quantity theory of money and the classical macroeconomic theory, if velocity is constant, then ______ determines real GDP and ______ determines nominal GDP.

• A) the productive capability of the economy; the money supply
• B) the money supply; the productive capability of the economy
• C) velocity; the money supply
• D) the money supply; velocity

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Definitions:

Street Smarts

Refers to practical knowledge and skills gained from experience outside of formal educational systems, often relating to urban survival.

Autism Spectrum Disorder

A disorder marked by challenges with socializing, communicating, and by limited or repetitive ways of thinking and acting.

Educational Treatment

Interventions and strategies that use educational methods to address and manage various conditions or disorders.

Mainstreaming

The placement of children with intellectual disability in regular school classes. Also known as inclusion.