A farmer sells sugar to a candy producer for $150 . If the producer uses this sugar to make candy that sells for $200, what is the total contribution to GDP from these transactions?

Suppose there is a 5 percent increase in the nominal wages of workers in an economy. The annual rate of inflation in the economy is about 2 percent. Which of the following is true in this case? a. Real wage would fall by about 10 percent

b. Real wage would increase by about 20 percent. c. Real wage would fall by about 25 percent. d. Real wage would increase by about 50 percent. e. Real wage would increase by about 3 percent.

In the simple Keynesian Cross model, the equilibrium level of real disposable income is determined by: a. the real interest rate

b. prices. c. aggregate expenditures. d. aggregate supply.