Government in the United States spends more as a percentage of GDP than in most other industrialized nations.

Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt. Which panel describes what happens in the market for frozen yogurt when the price of ice cream, a substitute product, increases?

A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)

National income is derived from gross domestic product by

A) adding personal income and transfer payments to gross domestic product. B) subtracting depreciation from gross domestic product. C) subtracting retained earnings from gross domestic product. D) adding personal taxes and depreciation to gross domestic product.