Refer to Table 19-12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is

If the government increases expenditures on goods and services and increases taxation by the same amount, which of the following will occur?

a) aggregate demand will be unchanged b) aggregate demand will increase c) interest rates will decrease d) the money supply will decrease e) the money supply will increase

A monetary aggregate is a measure of

A) the inflation rate. B) the total economic activity of the country. C) money broader than currency. D) definitive money.