A nation can forecast the following year’s deficit without knowing how fast GDP will grow.

Increased government purchases crowd out private purchases whenever the economy is

A growth recession is said to occur when the economy grows at a

A progressive income tax system is particularly effective as an automatic stabilizer because

Given C = 200 + 0.75YD, the multiplier is

Which of the following would result if the price level were below the equilibrium level?

Which of the following causes a movement along the investment demand curve?

Refer to Figure 11.3. Assume aggregate demand is represented by AD2 and full-employment output is $5.8 trillion. If aggregate demand decreases by the amount of the AD Excess, equilibrium will occur at

When the U.S. Treasury issues new bonds to replace bonds that have matured, it is engaging in

In Figure 8.5, according to Keynesians, if equilibrium real output is Q1 and full-employment real output is Q2, an appropriate fiscal policy lever would be to