Author Question: According to the equation of exchange, if the quantity of money is 4 billion and the velocity of ... (Read 110 times)

haleyc112 · **on:** Jun 29, 2018

According to the equation of exchange, if the quantity of money is 4 billion and the velocity of circulation is 3, nominal GDP is

A) 0.75 billion. B) 7 billion. C) 1.3 billion. D) 8 billion. E) 12 billion.

Question 2

When the AE line lies above the 45 line,

A) real GDP exceeds aggregate planned expenditure.
B) there are unplanned increases in inventories.
C) aggregate planned expenditure is less than real GDP.
D) the price level is rising.
E) there are unplanned decreases in inventories.