In the classical model the interest rate is determined in the money market; in the short-run macro model the interest rate is determined in the market for loanable funds

In the current year, a nation's government spending equals $15 trillion and its revenues are $20 trillion. Which of the following is TRUE?

A) The nation's national debt equals $5 trillion. B) This nation has a current year budget surplus of $5 trillion. C) This nation is currently running a budget deficit of $5 trillion. D) The nation has a current year trade surplus of $5 trillion.

What do all expansions and recessions since 1950 have in common?

a. Changes in oil prices. b. Changes in interest rates. c. Changes in spending. d. Changes in productivity. e. None of the above.