Discussion Question Ch 12

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Discussion Question (DQ) Chapter 12:

According to the textbook, How do economists use the equation m * v = p * y_Rto explain the cause of inflation?

Required: In not less than 300 words and not more than 600 words, use a term(s) or idea(s) or concept(s) from the chapter of your textbook you are currently assigned to respond to the DQ. Every response should have three elements: a textbook term(s); section citation and correct grammar and punctuation

Use of a TEXTBOOK term(s) or idea(s) or concept(s) from the assigned chapter textbook .
Textbook citation—however, since your e-textbook does not have page numbers you can cite to a relevant chapter “section” (see below for an example of what a chapter sections look like). For example, you could say “I used the comparative advantage section’s discussion of _________ to answer this question.)

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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