Real GDP per person in both Alpha and Omega is equal to $2,000. Over the next 100 years, real GDP per person grows at a 1.5 percent annual rate in Alpha and at a 2.5 percent annual rate in Omega. After 100 years, real GDP per person in Alpha is ________ smaller than real GDP per person in Omega.

If firms are producing an output greater than planned expenditures, these firms will cut back on production, which decreases GDP

Indicate whether the statement is true or false

Many state and local governments in the U.S. have balanced-budget laws in order to prevent politicians from:

A. Creating a "small government" economy B. Succumbing to voters' strong preference for budget deficits C. Facing a principal-agent problem D. Collecting too much taxes