The empirical data reveals the velocity of M2 to be:
A. relatively stable in the long run.
B. higher than the velocity of M1.
C. stable only when measured annually.
D. highly volatile in the long run.
Answer: A
Economics
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Which of the following is a reason for long-run potential growth of real GDP?
A) yearly growth of the labor force B) growth of the stock of physical capital over time C) improvements in technology over time D) all of the above
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Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising
If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the static AD-AS model in the figure above. A) D to C B) A to E C) C to B D) B to A E) E to A
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