Suppose nominal GDP is $2,000 a year and the quantity of money is $400. Then the velocity of circulation equals

If farm price supports gave farmers 60 percent parity in 1975, then we know that

a. farm purchasing power was 60 percent higher in 1975 than in 1910–1914 b. farm purchasing power was 60 percent lower in 1975 than in 1910–1914 c. farmers were better off in 1975 than in 1910–1914 d. farm prices in 1975 purchased 160 percent of what they purchased in 1910–1914 e. the purchasing power of a unit of farm goods in 1975 was 60 percent of the purchasing power it had in 1910–1914

Refer to the diagram, assuming that the firm represented is operating on curve TC 0 . If the user cost increases by $20 at the beginning of the year, the quantity extracted in the first year will:

A.  remain unchanged.
B.  decline by 250.
C.  decline by 500.
D.  decline by 1,000.