Let S = y - (100 + 0.5y). Assume no government or foreign sectors. At the equilibrium level of income, y* = 800, the level of saving is

To the extent that a direct expenditure offset results from an expansionary fiscal policy,

A) the fiscal policy will not be discretionary. B) the time lags associated with the implementation of fiscal policy will shorten. C) the stimulative effect will be less than anticipated. D) the stimulative effect will be more than anticipated.

Unemployment insurance:

A. is an explanation for why wages do not reach equilibrium. B. can affect how quickly people find jobs. C. will not affect the natural rate of unemployment. D. is a mandated federal policy all states must adhere to.