Economics A-Level
Velocity of circulation
What Velocity of circulation means in Economics A-Level, as defined for AQA.
Definition of Velocity of circulation
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Reference: AQA
The number of times a unit of currency changes hands to purchase final goods and services in a given period, assumed by monetarists to be relatively stable in the short run.
Topics that use Velocity of circulation
- Inflation and deflation (AQA A-Level)
Related terms
- Aggregate demand
- Cost-push inflation
- Debt and wealth effects
- Deflation
- Deflationary policies
- Demand-pull inflation
- Depreciation
- Disinflation
Using Velocity of circulation in the exam
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