The international trade response to a contractionary monetary policy will cause aggregate demand to shift ____ and aggregate supply to shift ____

Production functions used in economic growth theory are always limited to two inputs: labor and capital

Indicate whether the statement is true or false

In an economy, the government wants to decrease aggregate demand by $48 billion at each price level to decrease real GDP and control demand-pull inflation. If the MPS is 0.25, then it could:

A. Increase taxes by $16 billion B. Increase taxes by $24 billion C. Decrease government spending by $10 billion D. Decrease government spending by $16 billion