Given 'M' represents money supply, 'V' represents velocity of money, 'P' represents the price level, and 'Q' represents the total domestic output. Which of the following correctly describes the equation of exchange?
a. MV = P + Q
b. MV = P - Q
c. MV = P ??Q
d. MV = P/Q
c
Economics
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The AD curve shows the sum of
A) the price level, employment, and real GDP. B) consumption expenditure, investment, and real GDP. C) consumption expenditure, investment, government expenditures on goods and services, and net exports. D) consumption expenditure, investment, the price level, and real GDP.
Economics
Which of the following characteristics is common to monopolistic competition and perfect competition?
A) Each firm faces a downward-sloping demand curve. B) Entry barriers into the industry are low. C) Firms take market prices as given. D) Firms produce identical products.
Economics