If the quantity of real GDP demanded is less than the quantity of real GDP supplied, then
A) the economy must be producing at potential GDP.
B) the price level falls and firms decrease production.
C) the price level falls and firms increase production.
D) the price level rises to restore the macroeconomic equilibrium.
E) aggregate demand changes to restore the equilibrium.
B
Economics
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If the deficit is 0.08 times GDP, the existing debt—GDP ratio is 0.8, and the growth rate of nominal GDP is 0.05, then the change in the debt—GDP ratio is
A) +0.08 B) +0.04. C) 0. D) -0.08.
Economics
Contractionary fiscal policy _____
Fill in the blank(s) with the appropriate word(s).
Economics