Gallego & Co

question 162

Multiple Choice

Gallego & Co. reported sales of $525,000; beginning net Accounts Receivable of $207,000 and ending net Accounts Receivable of $224,000. Gallego & Co.'s receivable collection period (rounded to the nearest day) is:

• A)300.
• B)156.
• C)590.
• D)150.

Calculate the velocity of money given the money supply, money demand, and GDP.

Analyze the effect of central banks' monetary policies on the economy during recession periods.

Identify the effects of shifts in the money supply curve on equilibrium value, price levels, and money demand.

Understand the concept of real value of money and how it changes with prices.

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Definitions:

Aggregate Demand

The total quantity of goods and services demanded across all levels of an economy at a given price level and in a given time period.

Potential Output

The peak level of real GDP that can be maintained in the long run without causing inflation to rise.

Discretionary Fiscal Policy

Government policy involving changes in taxation and spending that are undertaken explicitly to influence economic activity.

Price Level

The econ-wide median price across the complete array of produced goods and services.