In the quantity theory of money, P and Y represent the price and quantity of:
A)all finished goods and services in an economy.
B)all finished goods sold in an economy.
C)all finished goods and services sold in an economy.
D)none of the above

Question

Quizplus · Accepted Answer

In the quantity theory of money, P represents the price level, and Y represents the real output or quantity of all finished goods and services sold in an economy. This theory is often used to explain the relationship between the money supply and the price level within an economy.

In the Quantity Theory of Money, P and Y Represent