Which of the following is a definition of velocity?
a. Velocity = value of final goods and services produced/money supply
b. Velocity = real GDP/M
c. Velocity = nominal GDP/real GDP
d. Velocity = (P Q)/(M V)
a
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Fred buys a fresh-off-the-assembly-line car from Wee-Rob-U Auto Sales. He paid $27,500, even though Wee-Rob-U acquired it for $23,000. What happens to this year's GDP?
A) Nothing. B) It increases by $4,500. C) It increases by $23,000. D) It increases by $27,500. E) It decreases by $4,500, because the dealer robbed Fred.
The figure illustrates Sally's budget line and her preferences. Point ________ is Sally's best affordable point, and Sally prefers point ________ to point ________
A) A; B; A B) E; C; B C) B; A; B D) B; B; D
One major difference between the aggregate supply curve and an individual supply curve isthe aggregate supply curve represents:
A. production in the economy as a whole rather than just one good or service. B. production in an entire market rather than just one firm. C. goods and services sold rather than the total actually produced by each firm. D. goods and services produced and actually sold by each firm.
If the MPC is 0.70, then the income multiplier is equal to
a. 0.70 b. 0.30 c. 0.14 d. 3.33 e. 5