If an Economy Produces 1,000 Units of Output with a Price

question 104

Multiple Choice

If an economy produces 1,000 units of output with a price level of $5 and the money supply (M) is $1,000, velocity is:

• A) 5.
• B) 200.
• C) 50.
• D) 2.

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Definitions:

Public Interest

The welfare or well-being of the general public and society as a whole, often considered in policy-making and law.

Efficient Combination

The optimal mix of goods and services produced with given resources to achieve maximum value or output.

Total Quantity

The overall amount or volume of a product or resource available or produced.

Unit of Output

The measurement of what is produced or accomplished within a given timeframe or per cycle of operation, typically associated with productivity.