Asked by JORDAN ESCOBAR on Apr 30, 2024
Verified
The output of our economy is represented by the letter _____ in the equation of exchange.
A) M
B) V
C) P
D) Q
Economy Output
The total value of all goods and services produced by an economy over a specific time period, also known as gross domestic product (GDP).
Equation of Exchange
The Equation of Exchange is an economic identity that relates the supply of money in an economy to the value of goods and services transactions, commonly represented as MV = PQ.
- Develop an insight into the equation of exchange and its components (MV=PQ).
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
D
Explanation :
The output of an economy in the equation of exchange is represented by the letter Q, which stands for the quantity of goods and services produced. The equation of exchange is often expressed as MV = PQ, where M stands for the money supply, V is the velocity of money, P is the price level, and Q is the real output or quantity of goods and services produced.
Learning Objectives
- Develop an insight into the equation of exchange and its components (MV=PQ).