The Velocity of Money Is the

question 115

Multiple Choice

The velocity of money is the

• A) rate at which the price index for consumer goods rises.
• B) multiple by which an increase in government expenditures will cause output to expand.
• C) average number of times a dollar is used to buy goods and services included in GDP.
• D) number of times a dollar is taken out of the country during a year.

---

Definitions:

Unskilled Labor

Labor that requires no specialized skills, education, or training.

Skilled Labor

Workers who possess specialized skills, training, or knowledge that are used in the production of goods or the provision of services.

Wage Rates

The amount of money paid to workers per unit of time, often an hour, reflecting compensation for labor.

Labor Productivity

The output per worker, measuring how efficiently labor is used in the production process.