In his book Losing Ground, _________ argued that between 1968 and 1980 government antipoverty spending quadrupled, but the poverty rate remained the same.

An increase in the price level is defined as

A) a recession. B) a growth boom. C) inflation. D) an expansion.

Refer to the above figure. Suppose the economy is operating at point A. There is a recessionary gap of ________, which can be closed by ________

A) $3 trillion; increasing government spending by $1 trillion B) $1 trillion; expansionary fiscal policy that shifts the short-run aggregate supply curve through point C C) $2 trillion; expansionary fiscal policy that generates another $2 trillion in total spending D) $2 trillion; an increase in government spending of $14 trillion