If an Economy Produces 2,000 Units of Output with a Price

question 132

Multiple Choice

If an economy produces 2,000 units of output with a price level of $1 and the money supply (M) is $1,000, velocity is:

• A) 2.
• B) 500.
• C) 50.
• D) 5.

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Definitions:

Contracts

Legally binding agreements between two or more parties that outline terms, conditions, and obligations related to a specific transaction or service.

Customer

An individual or organization that purchases goods or services from a business, forming the basis for the business's revenue and market purpose.

Retailer

A business or person that sells goods to consumers for their personal or household use.

Brick and Mortar

Physical stores or establishments that are physically present in a building or location, as opposed to online or virtual.