New classical economists believe that an increase in deficit financing by the government will

With normally-sloped IS and LM curves, an increase in government spending ________ the interest rate, which ________ autonomous planned expenditure, resulting in a final increase in income ________ than what the government spending increase would

have produced in the Chapter 3 model. A) lowers, raises, greater B) lowers, lowers, greater C) raises, lowers, less D) raises, raises, less E) raises, raises, greater

A recession is a period during which

a. aggregate demand, production, and unemployment rises. b. aggregate demand, production, and unemployment falls. c. aggregate demand, production, and unemployment remain the same. d. aggregate demand and production rises while unemployment remains the same. e. aggregate demand and production falls while unemployment rises.