Refer to the above figure. The equilibrium level of real Gross Domestic Product (GDP) is

The duration of unemployment tends to rise when

A) business activity goes into a downturn. B) business activity starts back up after a long period of decline. C) people leave their jobs rather than lose their jobs. D) the number of entrants exceeds the number of reentrants.

"Crowding out" occurs as an expansionary fiscal policy __________ interest rates, thus __________ investment spending

A) raises; increasing B) raises; decreasing C) lowers; increasing D) lowers; decreasing