Calculate the firm's total profit.

If government expenditures on goods and services increases by $20 billion, then aggregate demand

A) increases by $20 billion. B) increases by more than $20 billion. C) decreases by $20 billion. D) increases by less than $20 billion. E) decreases by more than $20 billion.

If an economy is growing at 2 percent a year but its rate of technology growth is 1 percent a year, then this country must be:

a. below its steady state level of capital per worker. b. expected to grow slower in the future. c. has a savings rate that is too low. d. none of the above.