If Year 1 is the base year, the real GDP of Year 2 is

Selling Treasury bonds to finance a federal deficit crowds out private investment by driving interest rates down.

a. true b. false

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,

A. increases B. remains constant. C. initially increases, then decreases. D. decreases.