The equation of exchange states that the quantity of money multiplied by the velocity of money equals:
a. real Gross Domestic Product
b. the price level.
c. nominal Gross Domestic Product.
d. the turnover rate.
e. the demand for money.
c
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Refer to Scenario 4 . What is the maximum number of schools that can be built? The maximum number of prisons?
What will be an ideal response?
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $13, Marko's will produce
A) 1 shirt. B) 2 shirts. C) 3 shirts. D) 4 shirts.
If the demand for cell phone service is inelastic, then
A) the percentage change in quantity demanded is greater than the percentage change in price (in absolute value). B) the percentage change in quantity demanded is less than the percentage change in price (in absolute value). C) the percentage change in quantity demanded is equal to the percentage change in price. D) the quantity demanded does not change in response to changes in price.
Refer to Figure 8.1. At 67 units of output, profit is
A) maximized and zero. B) maximized and negative. C) maximized and positive. D) not maximized, and zero. E) not maximized, and negative.