In the quantity equation, the value P_tY_t is: A) real GDP. B) nominal GDP. C) aggregate expenditure. D) the velocity of money. E) real money.

Name: In the quantity equation, the value P t Y t is: A) real GDP. B) nominal GDP. C) aggregate expenditure. D) the velocity of money. E) real money.
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Question

Quizplus · Accepted Answer

P_t and P_tY are measures of the quantity of money in circulation and P is the price level. Multiplying the two gives nominal GDP. Therefore, the value P_tY_t is nominal GDP.

In the Quantity Equation, the Value PtYt Is

In the Quantity Equation, the Value P_tY_t Is