At equilibrium real GDP in a private closed economy:
A. the MPC must equal the APC.
B. the slope of the aggregate expenditures schedule equals the MPS.
C. aggregate expenditures and real GDP are equal.
D. planned saving and consumption are equal.
C. aggregate expenditures and real GDP are equal.
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We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to
A) calculate the total number of units of goods produced in an economy. B) correct for inflation. C) directly compare the output of one economy to that of another. D) express the values of products in a common unit of measurement.
You lend your sister's daughter $2,000 for a year, and at the end of the year she pays you $2,180. The interest rate you are charging her is
A. 1.1%. B. 9%. C. 10%. D. 20%.