The economy is in equilibrium, TP = TE. Then, net exports fall. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, and business firms __________ the quantity of good and services they produce

The federal government pays airlines to service small cities in the United States through a subsidy program called Essential Air Service which was established in 1978 when the airline industry was deregulated

Most subsidies can't exceed $200 per passenger. Without this subsidy, what is TRUE? A) There would be higher prices and fewer flights. B) There would be lower prices and fewer flights. C) There would be an increase in supply. D) There would be a decrease in demand.

Ceteris paribus, when households spend less but do not supply of all their additional saving to the loanable funds market,

a. total spending will exceed below total income, satisfying Say's law. b. total spending will drop below total income, violating Say's law. c. total spending will drop below total income, thereby satisfying Say's law. d. total spending will equal total income, violating Say's law. e. this will contribute to an economic expansion.