Suppose that consumption spending is $19 million, planned investment spending is $6 million, actual investment spending is $6 million, government purchases are $12 million, and net export spending is $4 million. Based on this information, which of the following is true?

sclera-

If the economy starts at point A, where will the long-run equilibrium end up if there is an increase in investment spending?

The accumulation of all prior years deficits and surpluses is called the ___________.

The term “crowding out” refers to a decline in ________ as a result of an increase in ________.

Which of the following are automatic stabilizers

Joe’s cousin says that since the marginal propensity to consume is .75, the multiplier is 1.33.  Joe’s cousin is correct.

Figure 12-1Refer to Figure 12-1. The graph represents a perfectly competitive firm, so the market price is equal to the marginal revenue. The curve labeled MC shows the marginal cost of each unit. If the firm is producing 700 units,

The downward slope of the aggregate demand curve tells us that

How will an increase in labor productivity affect equilibrium in the labor market?