Velocity Is Computed as the

question 73

Multiple Choice

Velocity is computed as the

• A)price level times real GDP divided by the money supply.
• B)price level times the money supply divided by real GDP.
• C)real GDP times the money supply divided by the price level.
• D)real GDP times the money supply divided by the rate at which money changes hands.

---

Definitions:

Labor Skills

The abilities and expertise that workers possess, which determine their employability and efficiency in performing specific tasks.

Inflation Rate

The rise in the cost of goods and services across an economy over a specific period, expressed as a percentage.

Potential GDP

An estimate of the maximum level of economic activity that an economy can sustain over the long term without increasing inflation.

Labor Force

Comprises all the working-age population that is employed and those unemployed but seeking employment.