According to the equation of exchange, if the money supply is $800 million, real GDP is $3,000 million, and nominal GDP is $4,000 million, then the velocity of money is equal to:

If prices have increased since the base period, then

A) real GDP is larger than nominal GDP. B) real GDP can no longer be compared to nominal GDP. C) real GDP is equal to nominal GDP. D) real GDP is smaller than nominal GDP. E) there is no way to adjust nominal GDP so that it equals real GDP.

The cost of producing a tube of tooth paste is $0.05. If the market for tooth paste is monopolistically competitive, a manufacturer who charges $0.05 for each bottle will ________

A) shut down production in the short run B) exit the industry in the long run C) incur a loss in the short run D) earn zero economic profits in the short run