If the nominal GDP is $477 billion and the velocity of money is 4.5, then the money supply is:
A. $122 billion.
B. $98 billion.
C. $106 billion.
D. $477 billion.
C. $106 billion.
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Answer the following statements true (T) or false (F)
1. The relationship between the price of a book and the number of volumes purchased would be an example of microeconomics. 2. Some economic principles are based on physical phenomena. 3. If I stand up at a football game, I can see better. But if we all stand up, we block each other’s view. This is an example of the fallacy of composition. 4. The basic function of any economic system is to provide the framework for allocating scarce resources in a way that adequately satisfies unlimited wants.
Index mutual funds purchase shares of stock in those companies which are included in the market based indexes
a. True b. False Indicate whether the statement is true or false
Higher prices for ________ that are widely used across the entire economy can cause aggregate supply to shift.
a. inputs b. finished goods c. outputs d. products