The simple circular-flow diagram is a model that includes only some key players in the real economy. Which of the following key players are omitted from the simple circular-flow model?

The nominal interest rate is 7 percent and the expected inflation rate is 4 percent. The real interest rate is:

A) 10 percent. B) -2 percent. C) 3 percent. D) 4 percent.

A disadvantage of chain-weighting is that

A) past inflation rates change whenever the base year changes. B) past growth rates of real GDP change whenever the base year changes. C) it causes output growth to slow. D) the components of real GDP don't sum to real GDP.