1. (Quantity theory) In the long run, holding velocity growth constant, the growth of ________ is th

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1. (Quantity theory) In the long run, holding velocity growth constant, the growth of ________ is the cause of inflation.

A) the money supply

B) velocity

C) real GDP

D) the CPI

E) None of the above.

2. The average number of times a dollar is spent on final goods and services during a year is:

A) the viscosity of money.

B) the virtuousness of money

C) the vilification of money

D) the velocity of money

E) the verification of money

3. In the basic real business cycle model where prices are fully flexible, which of the following are associated with changes in aggregate demand?

I. changes in real GDP.

II. changes in inflation.

III. changes in spending growth.

 

A) I only

B) I and III only

C) II only

D) I, II, and III

E) II and III only

F) None of the above

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