When the Velocity of Circulation Equals 4 in 2010, This

question 262

Multiple Choice

When the velocity of circulation equals 4 in 2010, this fact means that

• A) consumers held four dollars in wealth for each dollar they spent in 2010.
• B) on average, each dollar of money in the economy purchased four dollars of goods and services in GDP in 2010.
• C) for each additional dollar of money injected into the economy, the price level rose 4 percent in 2010.
• D) real output of goods and services in GDP rose by four dollars for each additional dollar of money consumers saved.

Understand the role and objectives of international trade institutions and agreements in facilitating global trade.

Analyze the concept of regional trading blocs and their impact on global trade patterns.

Understand the basic concepts and theorists relevant to the study of psychoanalysis and sociology.

Grasp the significance of socialization across the lifespan and its impact on human behavior and personality.

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Definitions:

Output Produced

The total amount of goods and services produced by a firm or an economy during a specific period.

Input

Resources used in the process of production, including raw materials, labor, and capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of input.

Marginal Product

The extra output generated from increasing a particular input by one unit while keeping all other inputs unchanged.