Every day, ________ changes to make the quantity of money demanded equal the quantity of money supplied
A) real GDP
B) the money supply
C) the inflation rate
D) the nominal interest rate
E) the price level
D
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Which of the following is an example of a "how much" decision?
A) The Zhous have demolished their old home and are debating whether to build a ranch-style house or a Craftsman home. B) The Pleasantville movie theatre is open only in the evenings. The theatre's manager is debating whether to add daily matinee shows. C) You're planning to hold a graduation party and must decide between having your party catered or having a pot-luck. D) Chelsea has withdrawn from the swim team to take a full-time job.
Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.
Refer to the above data. If year 2 is the base year, then Real GDP in year 5 is:
A.
$120
B.
$90
C.
$60
D.
$30