The price system takes into account consumer preferences in the distribution of goods and services.

If a nation's population grows, then

A) growth in real GDP per person will be less than the growth of real GDP. B) there can be no economic growth. C) growth in real GDP per person will be greater than the growth of real GDP. D) there must be an increase in real GDP per person.

Since classical economists believe that both V and Q are constants, the equation of exchange becomes a theory in which

a. the quantity of money explains prices b. the quantity of money explains velocity c. the quantity of money explains real GDP d. changes in M cause changes in V e. prices are never flexible