Gross domestic product (GDP) decreases if the quantity of illegal drugs sold decreases

If the level of government expenditures is given, budget surpluses and deficits depend on tax revenues, which tend to vary directly with GDP.

a. true b. false

When the rental price of capital is above the equilibrium price ________

A) we have an excess supply of capital and the rental price should fall B) we have an excess demand of capital and the rental price should fall C) we have an excess supply of capital and the rental price should increase D) we have an excess demand of capital and the rental price should increase E) none of the above