The more people try to save, the more national income falls and saving, in spite of people's efforts and desire to save more, remains unchanged. This phenomenon is known as the paradox of

The private sector balance is equal to savings ________ investment, and the government sector balance is equal to government expenditure ________ taxes. If there is a deficit in the private sector balance and a deficit in the government sector balance, then there must be a ________ in net exports.

A) plus; plus; surplus B) minus; minus; deficit C) minus; minus; surplus D) plus; plus; deficit E) plus; minus; surplus

Classical economics refers to the perspective that the business cycle can be explained

A) using equilibrium analysis. B) using disequilibrium analysis. C) by long-run macroeconomic fluctuations. D) by short-run macroeconomic instability.