Which of the following products would be most difficult to resell?

If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________

A) risen; risen B) fallen; risen C) risen; fallen D) fallen; fallen

Use the aggregate expenditures model and assume an economy is in equilibrium at $5 trillion which is $250 billion below full-employment GDP. If the marginal propensity to consume (MPC) is 0.60, full-employment GDP can be reached if government spending:

a. decreases by $60 billion. b. decreases by $100 billion. c. decreases by $250 billion. d. is held constant.