Refer to above Table 2-2. What is the increase in real GDP between years 1 and 2 at fixed year 1 prices?

If current aggregate expenditure equals current production, an economy is in equilibrium

a. True b. False Indicate whether the statement is true or false

Adherents of the traditional monetary rule advocate that the:

A. functional finance approach to fiscal policy be adopted. B. money supply should be increased by a constant rate year after year. C. money supply should be reduced during inflation and increased during recession. D. money supply should be increased during inflation and reduced during recession.