Well the quantity theory is "The hypothesis that changes in prices correspond to changes in the monetary supply" so when inflation happens the price will increase but when that happens the purchases and the value of money will decrease so will its demand. That's the speculation that the prices will not correspond to the monetary supply
Answer:
b. continuous budgeting
Explanation:
Continuous budgeting (sometimes referred to as rolling budgeting) involves continually adding an additional month to the end of a multi-period budget as each month goes by.
The continuous budgeting concept is usually applied to a twelve-month budget, so there is always a full year budget in place.
Answer:
C. The government guarantees that potato farmers will receive at least $50 a ton.
Explanation:
Price floor is implemented by the government or a group where price control is imposed or limit is placed on how low a price a product can be sold.
For price floor to be effective it must be higher than the equillibrum price.
Equillibrum price is the price at which quantity consumers are willing to pay for is equal to quantity suppliers re willing to sell.
Price floors are usually used to keep commodity prices from going too low.
So if the government guarantees farmers will receive at least $50 per ton of potato, they are setting a price floor of $50.
Answer:
c. Real GDP in long run
Explanation:
Potential GDP refers to the level of real GDP in long run.
