In Figure 8.1, an increase in government spending, ceteris paribus, is best represented as a movement from point

Which combination of shifts of aggregate demand and supply would definitely cause an increase in real GDP?

Controversies between Keynesian, monetarist, and supply-side theories focus on the

To eliminate an AD shortfall of $100 billion when the economy has an MPC of 0.50, the government should increase spending by

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?