It is possible to observe a positive nominal interest rate together with a negative real interest rate

Figure 11-1 ? In Figure 11-1, the slope of the expenditures schedule is 0.75, and the government wishes to achieve full employment. It should

A. cut spending by 1,000. B. increase spending by 1,000. C. cut taxes by 1,000. D. increase spending by 250. E. cut taxes by 250.

When supply falls and demand remains the same, equilibrium price _______ and equilibrium quantity __________.

Fill in the blank(s) with the appropriate word(s).