The total level of all planned expenditures in the economy best describes

When an economy is in equilibrium,

A) planned expenditures exceed production and income. B) there is no savings nor investment. C) government tax revenues equal planned government expenditures. D) production and income equal planned expenditures.

If the Ricardian equivalence proposition is correct, then

A) deficits harm future generations. B) deficits reduce investment spending. C) deficits stimulate the economy in the short run. D) all of the above E) none of the above