Refer to Figure 6.1. Suppose the economy is originally in steady state at k*1. If the saving rate increases from s1 to s2, the capital-labor ratio will begin to ________, and real GDP per worker will ________

A government budget surplus occurs during a budget year when

A) tax revenues = government spending. B) tax revenues + government spending = personal income. C) tax revenues > government spending. D) tax revenues < government spending.

Deadweight loss is the decrease in ________ from producing an inefficient amount of a product

A) only consumer surplus B) only producer surplus C) consumer surplus and producer surplus D) profit