Use the Following to Answer Questions

question 20

Multiple Choice

Use the following to answer questions :
Scenario: The Velocity Equation
Suppose that real GDP equals $10 trillion, nominal GDP equals $20 trillion, and the aggregate price level equals 2.
-(Scenario: The Velocity Equation) Look at the scenario The Velocity Equation. If the velocity of money is 2, the money supply is:

• A)$20 trillion.
• B)$10 trillion.
• C)$5 trillion.
• D)$40 trillion.

---

Definitions:

Period Costs

Expenses that are not directly tied to production activities and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Overtime

The time worked by an employee or workers beyond the standard hours of work, usually compensated at a higher rate.

Idle Time

Time periods when resources such as personnel or machines are not actively engaged in production, often leading to inefficiency and increased costs.

Direct Labour Expense

The total cost of all the labour directly involved in the production of goods or services.