If Real GDP Equals 5,000, Nominal GDP Equals 10,000, and the Price

question 34

Multiple Choice

If real GDP equals 5,000, nominal GDP equals 10,000, and the price level equals 2, then what is velocity if the money stock equals 2,000?

• A)2
• B)2.5
• C)5
• D)10

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Definitions:

Economic Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Vietnam War

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Deindustrialization

The process of social and economic change caused by the removal or reduction of industrial activity, especially in manufacturing sectors, in a region or country.

Blue-Collar Workers

Refers to employees who perform manual labor or skilled trades, often requiring physical work and sometimes specialized training.