Using the equation of exchange, if the nominal GDP is $8,000 billion and the money supply is $1,600 billion, then

Which of the following is true of economic expansions?

A) Economic expansions are defined as the period between recessions. B) Consumption increases but investment falls during periods of economic expansion. C) Output grows during periods of economic expansion, but the unemployment rate is also high. D) Governments can correctly predict the length of periods of economic expansion.

In a market system, ________ provide signals about whether resources are relatively scarce or abundant.

A. scientists B. buyers alone C. government officials D. prices