If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP?

Refer to Figure 2.1. If you are producing 600 tons of agricultural products per year, what is the maximum amount of manufactured products you can produce per year?

A) 300 tons B) 500 tons C) 600 tons D) 700 tons

When the Fed sells government securities in the open market, the money supply ________ because ________

A) decreases; banks lose liquidity, they make fewer loans and checking account deposits decrease B) increases; banks gain liquidity, they make more loans and checking account deposits increase C) increases; banks lose liquidity, they make more loans and checking account deposits increase D) decreases; banks gain liquidity, they make fewer loans and checking account deposits decrease E) none of the above