Policy makers should manage aggregate demand so that it grows in line with the economy's capacity to produce. This task is the realm of

What could cause a decrease in the price level and simultaneously an increase in GDP similar to the 1920s in the United States?

A) a decrease in interest rates B) an increase in interest rates C) a decrease in consumer confidence D) an increase in productivity

A $300 billion decrease in both government spending and taxes will

A) decrease GDP by less than $300 billion. B) decrease GDP by more than $300 billion. C) not change the level of GDP. D) decrease GDP by $300 billion.