In an open economy including the government, planned expenditures equals

A rise in the price level will: a. cause an upward movement along the aggregate demand curve. b. cause a downward movement along the aggregate demand curve. c. cause a leftward shift of the aggregate demand curve

d. cause a rightward shift of the aggregate demand curve. e. have no impact on the aggregate demand curve.

The sacrifice ratio of the Volcker disinflation was larger than previous estimates had predicted

a. True b. False Indicate whether the statement is true or false