In the loanable funds market, if the government is running a deficit
a. it is a supplier of funds as it is taking in more than it is spending
b. it is a demander of funds as it is taking in more than it is spending
c. it is a supplier of funds as it is spending more than it is taking in
d. it is neither be a supplier or demander
e. it is a demander of funds as it is spending more than it is taking in.
E
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Describe one important criticism of Rostow's stages of economic growth theory
What will be an ideal response?
Answer the following statements true (T) or false (F)
1) Disposable income measures the before-tax income received by resource suppliers. 2) NDP can be determined by adding taxes on production and imports to GDP. 3) If nominal GDP is 150 and the GDP price index is 200, real GDP is 75. 4) If real GDP is 50 and nominal GDP is 100, the GDP price index is 200. 5) Real GDP accounts for changes in product quality; nominal GDP does not.