What determines the the real interest rate in the long-run classical model?

Nominal GDP is calculated by using

a. prices set in a base year. b. average prices in all major cities. c. current prices d. prices charged by initial producers.

High marginal tax rates, such as those instituted during the Great Depression, will

a. increase the incentive of people to earn. b. lead to a proportional increase in tax revenue and a reduction in the size of the budget deficit. c. cause people to work, earn, and invest less than would be the case if marginal tax rates were lower. d. attract workers from other countries where tax rates are lower.