In the equation mv = pyr, p represents:

a.
corporate profits.

b.
inflation.

c.
average productivity.

d.
the average price level.

The answer is D the average price level

Explanation:

This is Quantity Equation of Exchange thus MV= PT

M stands for the total amount of money in circulation which consists of coins, banknotes,and bank deposits. V represents the velocity of circulation. The total amount of money used in a given period is therefore,represented by MV.on the other hand,P stands for the General price level..that is average of the prices of all types of goods and services.T represents total of all the transactions that have taken place with money during the given period.

The velocity of money circulation is the rate or numbers of times that money changes hand over a given period of time. It is therefore, the total amount of transactions that occur in an economy over a given period .This is so because MV= PT

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