If the demand and supply both increase equally, then the equilibrium price ________, and the equilibrium quantity ________

Consider a tax cut which affects not only consumer disposable income, but also after-tax earnings from labor supplied to labor markets and from financial assets acquired through saving. In the long run we would expect this tax cut to

A) decrease the price level and increase the level of real GDP. B) increase both the price level and the level of real GDP. C) decrease the level of real GDP. D) decrease the price level.

Which of the following would increase the government purchases component of U.S. GDP?

A. The U.S. federal government pays $3 billion in pensions to government workers. B. The U.S. federal government pays $3 billion in interest to foreign holders of U.S. government bonds. C. The U.S. federal government pays $3 billion in interest on the national debt. D. The U.S. federal government pays $3 billion in salaries to soldiers in the military.