The equation of exchange is a formula indicating that the number of monetary units times
A. nominal Gross Domestic Product (GDP) is identical to the price level times the number of times each monetary unit is spent on final goods and services.
B. real Gross Domestic Product (GDP) is identical to the price level times the number of times each monetary unit is spent on final goods and services.
C. the number of times each monetary unit is spent on final goods and services is identical to the price level times real Gross Domestic Product (GDP).
D. the price level is identical to the number of times each monetary unit is spent on final goods and services times real Gross Domestic Product (GDP).
Answer: C
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Under conditions of oligopoly markets, firms generally don't like to compete based on price. Why? a. Because no producer has a cost advantage in doing so
b. Because consumers rarely spend time making price comparisons between different brands. c. Because competing on the basis of price can set off a price war among competitors and significantly reduce profits to the firm. d. Because price competition is illegal in most states.
When the money market is drawn with the value of money on the vertical axis, the price level decreases if
a. either money demand or money supply shifts right. b. either money demand or money supply shifts left. c. money demand shifts right or money supply shifts left. d. money demand shifts left or money supply shifts right.
When Benjamin Franklin wrote, "Remember that time is money!" he understood
What will be an ideal response?
A decrease in the supply of nurses will the equilibrium wage and the equilibrium quantity of nursing services.
A decrease in the supply of nurses will .......... the equilibrium wage and ............ the equilibrium quantity of nursing services.