Refer to Scenario 14.2. If each unit of output sells for $5, how many days of labor will the firm hire to maximize profit?

If government spending is $900 billion while government revenue is $600 billion, the government is said to have a

A) $600 billion budget deficit. B) $1,500 billion budget deficit. C) $300 billion budget deficit. D) $300 billion budget surplus.

When differences between nominal GDP and real GDP result due to price changes and nothing else is compared, an index is created called the

A) consumer price index. B) index of leading indicators. C) GDP deflator. D) inflation index.