If Real GDP Grows by 3 Percent, the Velocity of Circulation

question 248

Multiple Choice

If real GDP grows by 3 percent, the velocity of circulation does not change, and the quantity of money grows by 5 percent, then in the long run the inflation rate is

• A) 3 percent.
• B) -5 percent.
• C) -2 percent.
• D) 8 percent.
• E) 2 percent.

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Definitions:

Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business unit or department.

Balanced Scorecard

A management and planning system designed to align an organization’s activities with its vision and strategy, enhance communication within and outside the organization, and track the organization's performance in comparison to its strategic objectives.

Performance Measure

Metrics or indicators used to assess and quantify the efficiency, effectiveness, and performance of an organization or individual.

Improvement

The process of making something better or increasing its value, often referring to property or performance enhancements.