If MPC is .8 and investment rises by $30 billion, GDP will rise by $_________.

An increase in the sensitivity of private spending (consumption, investment, and net exports) to changes in the interest rate ________ the government purchases multiplier

A) will decrease B) will increase C) will not change D) may increase or may decrease

If at a particular price level, real output from producers is greater than real output desired by purchasers, then there will be a general:

A. Surplus and the price level will rise B. Surplus and the price level will fall C. Shortage and the price level will rise D. Shortage and the price level will fall