For this question, assume that the Fed is expected to respond to any event by keeping output constant (i.e., equal to its initial level). An unexpected increase in government spending will cause

The branch of economics that focuses on decision making for the economy as a whole is called:

a. normative economics. b. macroeconomics. c. microeconomics. d. consumer economics.

The sum of all income earned by resource suppliers in an economy is smaller than aggregate expenditure because some income is saved

Indicate whether the statement is true or false