Which measure of money would we most likely use if we were interested in looking at saving in the economy?

Which one of the following is TRUE about the effects of fiscal policy?

A) A decrease in government spending will decrease aggregate demand. B) A tax change does not have any direct or indirect effects on aggregate demand. C) A decrease government spending will increase aggregate supply. D) An increase in government spending will reduce aggregate demand.

When the Fed sells bonds in the open market, in the product market (the aggregate demand- aggregate supply model),

A) real GDP will fall and the price level will rise. B) real GDP and the price level will rise. C) real GDP and the price level will fall. D) real GDP will rise and the price level will fall.