In the equation of exchange, the variable whose value must be computed from the other variables is the

What is the limitation of using exchange rate-based measures as indicators of the standard of living across countries?

What will be an ideal response?

Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower