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.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 5PA

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