When one nation specializes in the production of one good and another nation specializes in the production of another good, more of both goods can be produced

You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $400 billion; (2) investment = $40 billion; (3) government purchases = $90 billion; and (4) net export = $25 billion. If the full-employment level of GDP for this economy is $600 billion, then what combination of actions would be most consistent with closing the GDP-gap here?

A. Increase government spending and taxes B. Decrease government spending and taxes C. Decrease government spending and increase taxes D. Increase government spending and decrease taxes

Which of the following statements is true?

A. The Federal funds rate is higher than the prime interest rate B. The prime interest rate is higher than the Federal funds rate C. The Federal funds rate and the prime interest rate are often the same D. The prime interest rate is often the same as the discount rate