Economics is considered to be part of the field of

In a period of hyperinflation, the velocity of circulation increases because

A) the real interest rate rises. B) households and firms spend money as soon as they receive payment. C) the nominal interest rate decreases. D) money is valuable everyone wants it. E) potential GDP increases.

The data in the above table indicate that when the price level is 100

A) inventories fall and the price level rises. B) the economy is in a long-run macroeconomic equilibrium. C) inventories rise and the price level falls. D) the unemployment rate is at its equilibrium level.