Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Then desired investment equals

Other things equal, if the central bank raises the target inflation rate, this would result in the

A) AD curve shifting temporarily to the right. B) AD curve shifting permanently to the right. C) AS curve shifting temporarily to the left. D) AS curve shifting permanently to the left.

If what producers intend to produce for consumption is precisely what consumers intend to consume, then the economy will be in equilibrium

Indicate whether the statement is true or false