Leakages are offset by investment and government spending in the circular flow model.

What happens to the demand for a good if a complement's price increases?

A) The demand increases and the demand curve shifts rightward. B) The demand decreases and the demand curve shifts rightward. C) The demand increases and the demand curve shifts leftward. D) The demand decreases and the demand curve shifts leftward. E) There is no impact on demand for the good and the demand curve does not shift.

In the Solow growth model, given the values of A, s, n, and d, the economy has an equilibrium growth rate of real GDP equal to

A) s. B) n. C) n + d. D) n - d. E) s - d.