If Nominal GDP Is $5 Trillion and Velocity Is 20,then

question 33

Multiple Choice

If nominal GDP is $5 trillion and velocity is 20,then

• A)actual money balances held by the nonbanking public is $250 billion.
• B)actual money balances held by the nonbanking public is $100 trillion.
• C)real GDP equals $100 trillion.
• D)real GDP equals $400 trillion.

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Definitions:

Depreciation

The reduction in the value of an asset over time, often due to wear and tear or obsolescence.

Implicit Cost

The opportunity cost equal to what a firm must give up or forgo in order to use resources in its own operations, not directly paid in money.

Part-Time Employees

Part-time employees are workers who are employed for fewer hours than the standard full-time work schedule, often without the same benefits as full-time employees.

Utility Bill

A monthly fee paid for services such as electricity, water, and gas consumption.