Examining the equilibrium conditions of individual markets and for households and firms separately is referred to as

Using the data in the above table, in the long-run macroeconomic equilibrium, the price level is ________ and the level of real GDP is ________

A) 115; $10 trillion B) 110; $10 trillion C) 105; $11 trillion D) 115; $11 trillion

How will an increase in the government budget surplus as a result of lower government spending (with no change in net taxes) affect private saving in the economy?

A) Private saving will increase by the amount of increase in the budget surplus. B) Private saving will be unaffected by the increase in the budget surplus. C) Private saving will decrease by less than the amount of increase in the budget surplus. D) Private saving will decrease by the amount of increase in the budget surplus.