In a certain economy, the components of aggregate spending are given by:C = 100 + 0.9(Y - T) - 500rI = 150 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 4 percent?

The net effect of a stronger dollar on real GDP is

A) an increase in the price level. B) dependent on whether the increase in aggregate supply is more or less than the decrease in aggregate demand. C) a decrease in real GDP. D) an increase in real GDP.

Arrange the following goods from least to most elastic, explaining your ordering: gasoline, Exxon gas, Exxon gas at a particular gas station.

What will be an ideal response?