Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ________ and investment to ________

In conducting positive economic analysis, economists apply

A. subjective value judgments. B. the principle of individual sovereignty. C. moral values. D. the scientific method.

If the price level rises, the effect on the expenditure schedule and equilibrium real GDP is to

A. increase both. B. decrease both. C. shift the expenditure schedule upward and decrease equilibrium real GDP. D. shift the expenditure schedule downward and increase equilibrium real GDP.