n long-run macroeconomic equilibrium,

A change in government purchases shifts the aggregate demand curve by an amount equal to the

A) change in consumption X marginal propensity to consume. B) change in government purchases X money multiplier. C) change in government purchases X spending multiplier. D) change in the spending multiplier X change in government purchases.

If the sacrifice ratio is 4, then reducing the inflation rate from 9 percent to 5 percent would require sacrificing

a. 4 percent of annual output. b. 8 percent of annual output. c. 12 percent of annual output. d. 16 percent of annual output.