If the quantity of money is $6 billion and nominal GDP is $9 billion, the velocity of circulation is
A) 0.67. B) 1.5. C) 36. D) 54. E) 3.
B
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The time that elapses between the implementation of a policy and its intended result is referred to as
A) the action time lag. B) the recognition time lag. C) the effect time lag. D) the data lag.
Derived demand:
A. is the sum total of all factors of production for a given good or service. B. refers to the demand for variable inputs when at least one fixed input exists. C. refers to the supply decisions of a final good influencing the demand for the inputs needed to make it. D. is only computed for the long-run demand decisions based on short-run marginal changes.
Trade a. can make every participating nation better off
b. makes some participating nations better off and others worse off. c. makes a participating nation better off only if the nation cannot produce that good itself. d. helps developed countries and hurts developing countries.
"Net exports" rather than "exports" are included in demand/expenditures, because:
a. Actually, exports are included and not net exports because only exports are a source of demand. b. Imports are counted in personal consumption expenditures. Therefore, net exports instead of just exports are included in aggregate demand. c. Imported goods and services are a part of personal consumption, gross private domestic Investment, and government spending. Therefore, net exports instead of just exports are included in demand. d. Neither exports nor net exports is included in aggregate demand. e. None of the above.