If nominal GDP is $5,000 billion and the velocity of the M2 money supply is 5, what is the amount of the public's holding in the form of M2?
A) $500 billion
B) $1,000 billion
C) $1,500 billion
D) $2,000 billion
Ans: B) $1,000 billion
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What will be an ideal response?
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A) $1,000. B) $10,000. C) $100,000. D) $1,000,000.
GDP overstates the productive capacity of a country when:
A. economic bads like pollution are produced and then must be cleaned up. B. there is a sizable underground economy. C. nonmarket production represents a large portion of the economy. D. working conditions improve, allowing jobs to be completed safer and faster.
A right-to-work law is
A) a federal law making the closed shop illegal. B) a federal law making the union shop illegal. C) a state law making the union shop illegal. D) a state law making the open shop illegal.