In an Economy in Which Velocity Is Constant and Real

question 5

Multiple Choice

In an economy in which velocity is constant and real output grows at an average rate of 4 percent per year,a 4 percent average rate of growth in the money supply would result in:

• A)a constant price level.
• B)a slowly increasing price level.
• C)a rapidly increasing price level.
• D)constant real GDP.
• E)constant nominal GDP.

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Definitions:

Organisational Capabilities

The collective skills, competencies, and resources that enable an organization to execute strategies and achieve its goals.

Working Alone

The act of completing job tasks and responsibilities without the direct involvement of other individuals.

Social Loafing

The tendency of some people to avoid responsibility by ‘free‐riding’ in groups.

Poor Work Ethics

The lack of commitment to professionalism and responsibility in the workplace, often resulting in substandard work performance.