Which of the following is false?
a. The money supply times velocity equals the price level times real GDP
b. If individuals are writing lots of checks on their checking accounts and spending currency as fast as they receive it, velocity will tend to be high.
c. The magnitude of velocity does not depend on the definition of money that is used.
d. Velocity equals nominal GDP divided by the money supply.
c
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The unemployment rate will decrease when
A) people get discouraged and quit looking for work. B) the age of the labor force increases. C) the average workweek falls from 40 to 39 hours. D) the duration of unemployment increases.
If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true?
A) The population has increased, but by less than 2%. B) The population has decreased. C) Real GDP has risen by more than 2%. D) None of the above is necessarily true.