The deliberate manipulation of government purchases, taxation, and transfer payments to promote macroeconomic goals is called using automatic stabilizers

In competitive price-searcher markets, short-run economic profits will lead to

a. long-run economic profits. b. the exit of firms from the market and the eventual restoration of zero long-run economic profits. c. the entry of additional firms into the market and the eventual restoration of zero long-run economic profits. d. the entry of additional firms into the market, which increases the demand for the product of each firm in the market.

In which case can we be sure real GDP rises in the short run?

a. foreign economies expand and government purchases rise. b. foreign economies expand and government purchases fall. c. foreign economies contract and government purchases fall. d. foreign economies contract and government purchases rise.