Expansionary fiscal policy ________ the price level and ________ equilibrium real GDP

Which of the following variables is fixed in the aggregate expenditure model?

A) output B) real GDP C) consumption D) investment E) price level

If the labor force in an economy is not fully employed, then

a. the economy is operating outside of its production possibilities frontier b. the economy is operating on its production possibilities frontier c. there must have been an increase in technology to compensate for the labor shortage d. the opportunity cost of producing more of one good is negative e. the economy is operating inside its production possibilities frontier