How is the velocity of circulation calculated?
What will be an ideal response?
The velocity of circulation is the average number of times a dollar of money is used annually to buy the goods and services that make up GDP. The velocity of circulation equals (nominal) GDP divided by the quantity of money.
Economics
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Contractionary fiscal policy will most likely
A) involve increasing government spending. B) reduce the price level. C) involve cutting taxes. D) raise real GDP.
Economics
In the market for used cars we have 10 sellers, willing to sell at the prices of $1000 . $2000 . $3000 . $4000 . $5000 . $6000 . $7000 . $8000 . $9000 . $10000 . If the equilibrium price in the market is $2500, how many cars would be sold?
a. 1 b. 2 c. 3 d. 4
Economics