If the fraction of the economy's nominal GDP held by the public in the form of money is 20 percent, income velocity in the economy is

International trade

A. raises the standard of living in all trading countries. B. lowers the standard of living in all trading countries. C. leaves the standard of living unchanged. D. raises the standard of living for importing countries and lowers it for exporting countries.

The gap that exists when equilibrium real GDP is greater than the level of real GDP shown by the position of the long-run aggregate supply curve is

A) the short-run aggregate supply curve. B) money illusion. C) a recessionary gap. D) an inflationary gap.