What Do Most Economists Think Is the Most Accurate Statement

question 159

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:

Somatosensory

Relating to the body's sensory system that processes touch, temperature, pain, and proprioception.

Motor Systems

The components of the central and peripheral nervous system that are involved in the movement control of muscles.

CNS

The central nervous system, consisting of the brain and the spinal cord, which processes and transmits neural information.

Force

A physical quantity that represents the push or pull on an object, having both magnitude and direction, and is capable of causing changes in the motion of the object.