Because a bank pays a lower interest rate on deposits than it charges on loans, it cannot fail

The above table gives information for the nation of North Hampton. There are no imports to or exports from North Hampton

a. Find aggregate planned expenditure for each level of real GDP. b. What is the equilibrium level of real GDP?

If points A and B are two locations on a country's production possibility frontier, then

A) the country could produce either of the two bundles. B) consumers are indifferent between the two bundles. C) producers are indifferent between the two bundles. D) at any point in time, the country could produce both. E) both bundles must have the same relative cost.