Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

In the circular flow model, which of the following owns the factors of production?

A) only federal, state, and local governments B) only households C) only firms D) both firms and households E) firms, households, and all levels of government

Explain the relationship between interest rates and (1) investments in housing, and (2) business investments