The underlying fluctuations in real GDP due to the business cycle are reflected by fluctuations in

When real GDP equals potential GDP, the quantity theory of money says that an increase in the quantity of money brings an equal percentage

A) decrease in real GDP. B) decrease in velocity. C) decrease in the price level. D) increase in the price level. E) increase in real GDP.

"Less demand causes lower prices, and lower prices cause more demand." The above statement shows

A) economic theory can be used to prove just about anything. B) everything depends on everything else. C) prices fluctuate in a free-market situation. D) the speaker has confused himself by saying demand in the first half of the statement when he meant quantity demanded. E) the speaker has confused himself by saying demand in the second half of the statement when he meant quantity demanded.