If the level of prices and output are compatible with both buyers’ and sellers’ intentions, then the policy goals are satisfied.

Jack has an MPC of 0.82 and Jill has an MPC of 0.78. Ceteris paribus, if the government transfers income from people who behave like Jack to people who behave like Jill,

The general formula for computing the desired stimulus is

Which of the following is an explanation for why the AD curve slopes downward?

If the economy has an inflationary GDP gap, one possible solution is to increase taxes.

The use of government taxes and spending to alter macroeconomic outcomes is known as

When the APC is greater than 1, the APS must be

According to classical economists, market-driven economies

A positively sloped aggregate supply curve reflects

The desired fiscal restraint is equal to