In a closed economy private saving is $500 billion and the government budget deficit is $100 billion. What is investment?

An increase in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant

A) rise; LM; right B) rise; IS; right C) fall; IS; left D) fall; LM; left

One way the government can boost the economy out of a recession is:

A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.