A growing consensus among economists is that ________ policy is better suited for controlling GDP because of the promptness of ________ in making policy decisions

Employing the government budget diagram shown in Figure 5-1 above, assume that the economy is initially in equilibrium at point A. The movement A to D represents

A) an increase in government spending and/or a decrease in taxes. B) a decrease in government spending and/or an increase in taxes. C) a decrease in government spending and a decrease in taxes. D) an increase in government spending and an increase in taxes.

GDP per capita:

A. tells us about how the output is allocated in an economy. B. tells us about what you can buy with a given amount of money in that country. C. is an average income per person in an economy. D. All of these statements are true.