From the quantity equation we find that the rate of inflation is equal by definition to the growth rate of the money supply ________ the growth rate of velocity ________ the growth rate of real GDP

Refer to the graph below. At equilibrium, the total amount of spending that consumers would be paying for the product is represented by the area:

The equilibrium point in the market is where S and D curve intersect.



A. a + b
B. a + b + c
C. a
D. b + c

The industry elasticity of demand for good Y is ?3, while the elasticity of demand for an individual manufacturer of good Y is ?12. Based on the Rothschild approach to measuring market power, we conclude that:

A. 1/4, indicating there is little monopoly power in this industry. B. 1/4, indicating there is significant monopoly power in this industry. C. 4, indicating there is little monopoly power in this industry. D. None of the answers are correct.