Compromise between the desire to facilitate international trade and the need to give domestic governments latitude to govern their economies is called

In the short run, real GDP can increase beyond a level consistent with the long-run growth path if

A) existing capital and labor are used more intensely. B) the price level decreases accordingly. C) we measure in nominal terms instead of real terms. D) there is an increase in marginal tax rates.

Crowding out refers to the fall in

a. investment spending caused by higher taxes b. consumption spending caused by higher taxes c. consumption spending caused by higher levels of government spending d. government spending to do a balanced budget amendment e. private investment caused by an increase in government spending