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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.3
If the velocity of money increases while the money supply remains constant, what is likely to happen to the nominal GDP, assuming that the price level remains constant?
The nominal GDP is likely to decrease
The nominal GDP will fluctuate unpredictably
The nominal GDP is likely to increase
The nominal GDP is likely to remain the same
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AP Macroeconomics - 5.3 Money Growth and Inflation
Key terms
Money Supply
Nominal GDP
Price level
Velocity of Money
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Cram Mode
AP Score Calculators
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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