If Velocity and Output Were Nearly Constant,then

question 37

Multiple Choice

If velocity and output were nearly constant,then

• A)the inflation rate would be much higher than the money supply growth rate.
• B)the inflation rate would be about the same as the money supply growth rate.
• C)the inflation rate would be much lower than the money supply growth rate.
• D)any of the above would be possible.

---

Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, indicating the per-unit cost of production.

Cost Curve

A graph showing the relationship between the cost of producing goods and the quantity produced.

Average Fixed Cost

Production's unchanging charges, unaffected by output levels, divided by the total output quantity.

Average Variable Cost

The cost a company incurs to produce one additional unit of a product, calculated by dividing the total variable costs by the number of units produced.