If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, the mpc equals 0.8, and potential output (Y*) equals 9,000, then taxes must be ________ by approximately ________ to eliminate any output gap.

Economic growth refers to an increase in:

A) tax rates. B) prices. C) GDP per capita. D) population.

If the United States imports purses, then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) not change; increase