In Vertical Analysis

question 1

Multiple Choice

In vertical analysis:

• A) a base amount is optional.
• B) a base amount is required.
• C) comparative statements are optional.
• D) comparative statements are required.

---

Definitions:

Goods and Services

Physical items (goods) and activities provided by others for use or consumption (services).

Quantity Equation

An equation that relates the money supply, its velocity (rate at which money is exchanged), and the price level of goods and services in an economy.

Changes Hands

An expression referring to the act of transferring ownership of something from one person or group to another.

Overall Prices

Overall prices refer to the general level of prices for goods and services in the economy, often assessed through indicators like the Consumer Price Index (CPI).