If the nominal interest rate is 8.3% and the inflation rate is 4.4%, what is the real interest rate?

In the aggregate expenditure (AE) model, the economy is driven to its equilibrium by changes in

A) autonomous expenditures that are the result of changes in real GDP. B) investment that are the result of changes in real GDP. C) induced expenditures that are the result of changes in real GDP. D) net taxes that are the result of changes in real GDP. E) government expenditures on goods and services that are the result of changes in real GDP.

The opportunity cost of constructing a new public highway is the:

A. Money cost of hiring contractors and construction workers for the new highway B. Value of other goods and services that are sacrificed in order to construct the new highway C. Expected cost of constructing the new highway in a future year D. Value of shorter driving times and distances when the new highway is completed