Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:

Constructing the CPI involves which of the following stages?

i. conducting the monthly price survey ii. converting the CPI to an international index iii. selecting CPI market basket A) i and iii B) iii only C) ii only D) i only E) i, ii, and iii

Suppose the economy has no income taxes or imports. The MPC equals 0.8. What does the expenditure model predict will be the change in real GDP if investment increases by $200 billion?

What will be an ideal response?