According to the quantity theory of money, a decrease in the quantity of money causes

O A. average prices to decrease but nominal GDP to increase. O B. average prices to decrease but nominal GDP will stay constant. O C. both average prices and real GDP to decrease. O D. both average prices and nominal GDP to increase. O E. both average prices and nominal GDP to decrease.

Charles has a part time job selling jeans at the mall. Charles would rather work more hours, but he keeps busy making an army of superhero robots in his garage. Statistics Canada classfies Charles as O A. underutilized.

O B. discouraging

O C. unemployed.

O D. discouraged.

O E. not in the labour force.

According to the quantity theory of money, an increase in the quantity of money increases average prices,

O A. decreases real GDP, and increases velocity

O B. increases real GDP, and decreases velocity.

O C. has no effect on real GDP and decreases velocity.

O D. and increases both real GDP and velocity.

O E. and has no effect on real GDP or velocity.

Which is not part of the story of downward demand - pull deflation?

O A. demand for output decreases relative to supply

O B. consumers have less income to spend

O C. businesses have unsold products and services

O D. businesses face shortages of inputs

O E. workers have difficulty getting raises