The IS—LM model predicts that a temporary beneficial supply shock
A) increases output, national saving, and investment, but not the real interest rate.
B) increases output, national saving, and the real interest rate, but not investment.
C) increases the real interest rate, investment, and output, but not national saving.
D) increases output, national saving, investment, and the real interest rate.
A
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Answer the following statements true (T) or false (F)
1. In the expenditures approach, transfer payments such as unemployment compensation are included in the G component of GDP. 2. National income (NI) is estimated as the sum of four categories of income (wages, rent, interest, profits) plus taxes on production and imports. 3. Personal income (PI) is the income that households are free to spend or save as they please. 4. Disposable income (DI) includes transfer payments like Social Security benefits and unemployment benefits.
The initial effect of the 2009 Obama Stimulus Plan upon the federal budget was to
A. eliminate the corporate income tax liabilities of major oil companies. B. increase the federal budget deficit by as much as $750 billion. C. eliminate all opportunities for "logrolling" in the Congress. D. all of the options are correct.