In the long-run ISLM model and with everything else held constant, the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate

If economists forecast a decrease in aggregate expenditure, which of the following is likely to occur?

A) Inventories will fall. B) GDP will rise. C) GDP will fall. D) Wages will rise.

The only variable that can affect a movement along the demand curve is

A) income levels. B) the price of the good itself. C) the number of buyers. D) the number of substitutes.