The quantity theory of money predicts that in the ________, a 10 percent increase in the quantity of money leads to a 10 percent increase in ________

A) long run; real GDP
B) short run; velocity
C) long run; velocity
D) long run; price level

D

Economics

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The price of a good is above the equilibrium price,

a. there is a surplus and the price will rise. b. there is a surplus and the price will fall. c. there is a shortage and the price will rise d. there is a shortage and the price will fall. e. the quantity demanded is equal to the quantity supplied and the price remains unchanged.

Economics

Use the idea of the circular flow diagram to explain why the value of production equals total income equals total expenditure

What will be an ideal response?

Economics