Other things equal, if a full-employment economy reallocated a substantial quantity of its resources to capital goods, we would expect:

A. present consumption to rise.
B. future consumption to fall.
C. a lower rate of growth of real GDP.
D. labor productivity to rise.

D. labor productivity to rise.

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Based on the information in Scenario 1, nominal GDP in 2016 in this economy was

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When federal outlays exceed revenues, the budget is said to be in surplus

Indicate whether the statement is true or false

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