Which of the following statements is/are true? 1. In Wakanda, nominal GDP equals 24 000 Wakandan dollars and the money supply is 6 000 Wakandan dollars. You thus conclude that the Cambridge "k" is equal to 0.5 in Wakanda. 2. You have determined from data provided by the Marvel Comics World Bank that the nominal and real GDP levels in Ghudaza and Wakanda are exactly the same. However, Ghudaza uses its currency more frequently than Wakanda does. You draw the conclusion that Wakanda has a bigger money supply than Ghudaza. O a. Only Statement 2 is correct. O b. Statements 1 and 2 are correct. O c. Only Statement 1 is correct. d. Statements 1 and 2 are incorrect.
Which of the following statements is/are true? 1. In Wakanda, nominal GDP equals 24 000 Wakandan dollars and the money supply is 6 000 Wakandan dollars. You thus conclude that the Cambridge "k" is equal to 0.5 in Wakanda. 2. You have determined from data provided by the Marvel Comics World Bank that the nominal and real GDP levels in Ghudaza and Wakanda are exactly the same. However, Ghudaza uses its currency more frequently than Wakanda does. You draw the conclusion that Wakanda has a bigger money supply than Ghudaza. O a. Only Statement 2 is correct. O b. Statements 1 and 2 are correct. O c. Only Statement 1 is correct. d. Statements 1 and 2 are incorrect.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Which of the following statements is/are
true?
1. In Wakanda, nominal GDP equals 24
000 Wakandan dollars and the money
supply is 6 000 Wakandan dollars. You
thus conclude that the Cambridge "k" is
equal to 0.5 in Wakanda.
2. You have determined from data
provided by the Marvel Comics World
Bank that the nominal and real GDP
levels in Ghudaza and Wakanda are
exactly the same. However, Ghudaza
uses its currency more frequently than
Wakanda does. You draw the
conclusion that Wakanda has a bigger
money supply than Ghudaza.
O a.
O b.
O c.
O d.
Only Statement 2 is correct.
Statements 1 and 2 are correct.
Only Statement 1 is correct.
Statements 1 and 2 are incorrect.
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