The Simple Quantity Theory of Money Predicts That If

question 12

Multiple Choice

The simple quantity theory of money predicts that if

• A) the money supply rises by $200,then GDP falls by $200.
• B) GDP rises by $400,then the money supply rises by $400.
• C) the money supply rises by 10 percent,then the price level rises by 10 percent.
• D) the money supply falls by $300,then GDP rises by $300.

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Definitions:

Labor Market

A marketplace where employers find workers and workers find jobs; it involves the supply and demand for labor.

Autocratic Workplace

An environment where decision-making is concentrated in the hands of a single leader or a small group, often resulting in minimal input from employees.

Union Acceptance

The acknowledgment and approval by an employer or society of the role and rights of unions to represent their members.

Human Resource Management

The strategic approach to the effective and efficient management of people in an organization to help it gain a competitive advantage.