The national debt is the accumulation of national deficits, tabulated every fiscal year.

Therefore, if the national debt at the beginning of the year is $1000 and the deficit for that year is $100, the accumulated nation deficit is $1000+$100=$1100.

If you selected $900, you may have subtracted the deficit that year rather than adding it.

If you selected $100, you may have mistaken the national deficit for the national debt.

If you selected $1000, you may have forgotten to include the new deficit of $100 into the calculation of national debt.

John Maynard Keynes began arguing forcefully in the 1920s that spending in a deficit would actually help a country get out of an economic depression. The Great Depression of the 1930s saw many governments put Keynes' theories to the test, often with economic success. This time period is often known as the Keynesian Revolution.

The correct answer is that an increase in interest rates would weaken the multiplier effect. The reason is that an increase in interest rates would make it more attractive for consumers to save money, so as a result, there would be less of a propensity to consume.

A balanced budget law is pro-cyclical because when the economy enters a recession (GDP decreases), the amount of production the government is able to tax decreases, leading to a decrease in government revenue. The government is unable to spend at a deficit, so the government must decrease expenditures. Government expenditures make up a substantial portion of GDP, so GDP decreases even more. 

The correct answer is that a Keynesian Economist would be most likely to advocate increased spending on public infrastructure if the economy was in recession, even if such an increase results in an increase in budget deficits.

The reason for this is that the Keynesians believe that such an increase in public works spending will lead to an increase in aggregate demand.

To calculate the GDP, we add consumption, investment, government expenditures, and net exports. 

Transfer payments, such as social security, welfare, and unemployment checks, on the other hand, are not included in the calculation of the GDP.

The quantity of money times the velocity of money is equal to the real output times the price level. So, if the above equation is solved for Y, it gives us: 

The income approach to calculating GDP will arrive at the same number as other approaches, such as the production approach or expenditure approach. The five sources of income used to calculate Income GDP, or Gross Domestic Income, are wages and salaries; interest and investment income; corporate profits; farmers' income; and non-farm unincorporated business profits.

Nominal GDP growth refers to the rate at which real GDP increases. To find real GDP growth (i.e. GDP growth that accounts for inflation), subtract the inflation rate from the nominal GDP growth rate.

In this case, the nominal GDP growth rate is 8 percent, and the inflation rate is 4 percent. Thus, the real GDP growth rate is 4%.

Trade does not depend on absolute advantage (who can produce the most of both goods) but comparative advantage (who can produce one good cheaper than the other). Country A can produce cars more cheaply than country B (1 car costs 2.5 computers for country A while it costs 3 computers for country B). Country B on the other hand can produce computers more cheaply than country A (1 computer costs 0.3 cars in country B while it costs 0.4 cars in country A). Thus they will both benefit from trade.